Which of the following items are considered physical capital?
i. shares of Ford stock traded on the New York Stock Exchange
ii. the Taco Bell store nearest you
iii. the rental cars owned by Hertz Rental-A-Car
iv. the salaries paid to Intel executives
A) ii and iii.
B) i, ii and iv.
C) i, ii and iii.
D) i and iv.

Question

Quizplus · Accepted Answer

Physical capital refers to tangible assets used in the production process. Shares of stock and salaries paid to executives are not tangible assets. The Taco Bell store and rental cars owned by Hertz are examples of physical capital.

Which of the Following Items Are Considered Physical Capital