\begin{tabular}{l} The machines workers have to work with are considered \\ \( \begin{array}{l}\text { O human capital. } \\ \text { O financial capital. } \\ \text { O physical capital. }\end{array} \) \\ \hline\end{tabular}
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The Deep Dive
Machines used by workers are categorized as physical capital. Physical capital refers to tangible assets that are used in the production of goods and services, including machinery, buildings, and equipment. By enhancing productivity, physical capital plays a crucial role in the overall efficiency and effectiveness of economic activities. In real-world settings, businesses invest in physical capital to gain a competitive edge. For instance, a factory upgrading its machinery with the latest technology can produce goods more quickly and with higher precision, ultimately reducing costs and increasing profit margins. This illustrates how the thoughtful investment in physical capital can propel a company forward in today's fast-paced market.
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