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Which of the following statements relate to physical capital?

A. It is intangible

B. It is tangible

C. It creates only private benefit

D. Owner of physical capital needs to be present at the place where it is used

E. It can easily be sold in the market

Choose the correct answer from the options given below:

Solution

Correct Option: 4

Physical capital is tangible (B), unlike human capital which is intangible. It generates mainly private benefits for its owner (C), whereas human capital creates both private and social benefits. Physical capital can be sold in the market (E) relatively easily. The owner does not need to be present where it is used (unlike human capital). Hence B, C, and E only.

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