Physical capital differs from raw materials in the sense that raw materials
A) have a longer useful life in production
B) are considered human capital
C) cannot be used to produce goods and services
D) are used up in production
E) are not a resource used in production

Question

Quizplus · Accepted Answer

Raw materials are materials that are used up in the production process. They are not physical capital, which refers to the tools, equipment, and machinery used to produce goods and services. Raw materials are typically consumed or transformed during the production process, while physical capital is an ongoing resource that can be used repeatedly in the production process.

Physical Capital Differs from Raw Materials in the Sense That