What is the term for the stock of equipment and structures used to produce goods and services?

The stock of equipment and structures used to produce goods and services is known as physical capital. This term encompasses all the tangible assets that a business utilizes in the production process, such as machinery, buildings, vehicles, and tools. Physical capital is critical in enhancing productivity and efficiency, as it allows for the smooth operation of production processes and helps in generating goods and services that meet consumer demand.

In contrast, human capital refers to the skills, knowledge, and experience possessed by individuals that contribute to their productivity. Natural resources indicate the raw materials and environmental assets used in production, such as minerals, forests, and water. Financial capital pertains to the funds required to finance business operations and investments, including cash, stocks, and bonds. Therefore, physical capital is specifically the category that directly relates to the equipment and structures necessary for production activities.