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Which of the following scenarios is an example of an investment in physical capital?

1) Buying stocks in a company
2) Purchasing a new computer for a business
3) Investing in a mutual fund
4) Starting a savings account

User Vgoklani
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1 Answer

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Final answer:

Purchasing a new computer for a business is an example of investing in physical capital, as it is a tangible asset that increases the company's productive capacity.

Step-by-step explanation:

The scenario which exemplifies an investment in physical capital is purchasing a new computer for a business. This involves spending money on tangible assets that can improve the productive capacity of a business. Investing in stocks, mutual funds, or starting a savings account are examples of financial capital investments, designed to offer a return to the investor over time rather than boost the immediate productive capabilities of the business.

User Northern
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