Question

Which of the following is physical capital?

a. a college degree
b. a factory building
c. learning to sew
d. playing the violin

Answer 1

The provided option that represents physical capital is a factory building. It is an asset used in production and is distinct from human capital, which refers to skills and knowledge.

Step-by-step explanation:

The question requires identifying which of the provided options is a form of physical capital. Among the choices given, a factory building represents physical capital. It is a tangible asset used in the production of goods or services. Unlike a college degree or learning a new skill, such as sewing or playing the violin, which are considered forms of human capital, a factory building is a part of the actual physical assets of a company. Physical capital and human capital are essential components of economic growth, as they work in conjunction with technology to contribute to an economy's productivity. While human capital refers to the skills, knowledge, and experience possessed by an individual or population, physical capital refers to assets like machinery, buildings, and infrastructure.

Answer 2

A physical capital has to be something that is "physical", that is - it has to be possible to touch and for example move somewhere else.

The example of a physical capital here (and the correct answer) is a factory building (it might be hard to move, but it can at least in theory be moved).