Final answer:
Physical capital refers to long-lasting man-made physical resources that businesses use for producing goods and services, such as machinery and tools, as well as durable goods like houses and land that can be bought and sold.
Step-by-step explanation:
The subject of this question refers to physical capital, which are physical resources that are owned and used by a business and are permanent or have a long life. Physical capital per person is the amount and kind of machinery and equipment available to help a person produce a good or service. It includes man-made resources such as buildings, factories, tools, and money, which facilitate the production process. Natural resources, on the other hand, are materials found in nature, like land, coal, or timber, which have not been altered by human effort and are also important for production.
Certain assets, like a house, land, art, rare coins, or stamps, can be considered part of one's physical capital as they can be bought and later sold by an individual or a business. It should be noted that while natural and capital resources are vital for production, scarcity implies that these resources are finite and always less in quantity than the human wants they are meant to satisfy.