Which one of the following terms denotes the inputs in terms of tools, machines, buildings, raw materials and money in hand required at any stage of production ?

Physical capital refers to the variety of man-made inputs required at every stage of production [1]. It is broadly categorized into two types: fixed capital and working capital. Fixed capital includes durable assets like tools, machines, and buildings that can be used in production over many years. Working capital consists of raw materials and money in hand, which are used up or transformed during the production process. While human capital refers to the skills and knowledge of the workforce, physical capital encompasses the tangible, human-made assets such as machinery and equipment used to produce goods and services [2]. Therefore, the term that collectively denotes tools, machines, buildings, raw materials, and money in hand as production inputs is physical capital.

Sources

1. [1] Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 7: Factors of Production > Capital > p. 172
2. [2] https://www.investopedia.com/terms/p/physical-capital.asp