Question

Which of the following is an example of changing physical capital?

A. hiring more workers to do a job
B. building extra space in a factory
C. switching to cheaper fuel
D. lowering workers’ wages

Answer 1

Answer is B) Building extra space in a factory.

Answer 2

C. switching to cheaper fuel. Physical capital pertains to non-human asset. Under this type were the asset that use to process goods and services like machinery, buildings etc.