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WHAT IS PHYSICAL CAPITAL
Physical capital, such as equipment and machinery, are factors of production. Access to equipment and machinery will impact how much and how efficiently goods and services can be produced.

Physical capital has the following features: (1) it can be used in the production of other goods, (2) the physical capital item was produced, in contrast to "land", which is naturally occurring, (3) and it is not used up immediately in the process of production, but is subject to depreciation.


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