QA Palampur
Question and Answers Q.Explain the term physical capital. Mention its different types with examples. Answer: Physical capital is the capital that is further used in the production of more goods such as tools, equipments, machines and raw materials. The two types physical capital are: 1. Fixed Capital. It is that capital which can be used over and over again. This capital lasts for a longer time such as machines and tools. 2. Working Capital. It consists of those goods that are used up in the process of production such as raw materials and money. Q. What is the aim of production? State any four requirements for production. Answer: The aim of production is to generate income for those people who are involved in the production of goods and services. The four requirements for production are: 1. Land. It is a first requirement of production. No activity can take place in the absence of land and it is the bas...