Question

Steel as a capital good can be used in various lines of production. Steel is a ______.

Options

• Fixed Capital

• Circulating Capital

• Floating Capital

• Sunk Capital

Answer 1

Steel as a capital good can be used in various lines of production. Steel is a Floating Capital.

Explanation:

Floating capital refers to productive assets that are highly adaptable and may be easily transferred between completely different lines of manufacture. Because steel is a raw material that can be freely diverted to construct high-rise structures, assemble passenger cars, or forge medical gadgets, it is not limited to a single use. This fluid flexibility across numerous production sectors distinguishes floating capital from highly specialised sunk assets.