Question : Assertion: Physical capital is tangible in nature
Reason: Physical capital can be seen and touchable.
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is False
Option 4: Assertion (A) is False but Reason (R) is true.
Correct Answer:
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A).
Solution :
Physical capital refers to tangible, man-made objects that a company purchases or invests in and uses to produce goods. Physical capital items, such as manufacturing equipment, are also classified as fixed capital because they are reusable and not consumed during the manufacturing process.
Hence option a is the correct answer.
