Final answer:
Physical capital for a woodworker making furniture includes tools like saws and drills, essential for producing goods. Money is not considered capital because it cannot directly produce goods, but rather is used to purchase capital. The correct option that lists elements of physical capital for a woodworker is 'D. saws and drills'.
Step-by-step explanation:
The physical capital used by a woodworker to make furniture would include items and equipment such as saws and drills. These tools are types of capital that assist workers in the production of goods and services. Other examples of physical capital in various industries might include offices, machinery, transportation equipment like cars and trucks, as well as infrastructure like roads and bridges.
In the context of a woodworker, capital does not include money, as money itself does not directly aid in the production of furniture, though it can be used to acquire equipment that does. Therefore, the workshop, as part of the facilities where production happens, would also be considered capital, whereas hard work and time are inputs of labor and not physical capital.
It's important to note that capital is a result of production, such as the assembly of a bulldozer, as well as a means to production, such as using a bulldozer on a construction site. The third factor of production, capital goods, include all tangible assets that facilitate the production process. This would exclude items such as trees and oil, which are raw materials, and exclude concepts such as hard work and time, which fall under the category of labor.
Thus, for a woodworker, essential capital goods specific to their craft that enable the production of furniture include the mentioned saws and drills, tools for cutting and assembling wood.