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Which one of the following terms denotes the inputs in terms of tools,

June 1, 2025 by rawan239

Which one of the following terms denotes the inputs in terms of tools, machines, buildings, raw materials and money in hand required at any stage of production ?

Fixed capital

Working capital

Physical capital

Human capital

This question was previously asked in

UPSC CDS-1 – 2022

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The term that denotes inputs like tools, machines, buildings, raw materials, and money in hand required at any stage of production is Physical capital.

Physical capital encompasses all man-made, tangible assets used in the production process. This includes both fixed capital (long-lasting assets like buildings, machinery) and working capital (short-term assets like raw materials, cash) necessary for day-to-day operations.

Fixed capital refers specifically to durable assets used over a long period. Working capital refers to short-term assets used up or converted into cash within a year. Human capital represents the skills, knowledge, and experience of the workforce. Physical capital is the overarching term for the physical tools and resources used in production.

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