Case Interview Prep

Category - Economics

Which of the following is considered physical capital that contributes to the economic growth of a country?
  1. transportation infrastructure
  2. federal reserve bank
  3. currency exchange centers
  4. average length of adult population schooling
Explanation
Answer: A - Transportation infrastructure is considered physical capital.

Key Takeaway: Physical capital is comprised of natural resources and physical structures that contribute to the economic growth of a country. Among examples of physical capital are infrastructures, buildings, and natural resources. As with human capital, physical capital provides a return on investment and is susceptible to depreciation.
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