Question

Which statement(s) is (are) TRUE? I. Technological knowledge refers to the physical capital that is used to make goods and services. II. More and better tools make workers more productive. III. Physical capital refers to the tools of the mind.

Answer 1

Answer:

Option 2 is only correct.

Explanation:

The reason is that the physical capital is the physical assets used for production of goods and services whereas the Technological knowledge refers to the knowledge of increasing the productivity by utilizing physical capital. So these two statements were incorrect.

The second statement is correct because the better tools or technology we have the better we can produce. This means these technological tools helps workers to produce more so the statement is correct.