Which of the following is an example of changing physical capital? ...

A. hiring more workers to do a job

B. building extra space in a factory

C. switching to cheaper fuel

D. lowering workers' wages

The answer would be B).

When you say physical capital, it refers to the additional machinery, building, space etc.

Therefore an example of changing physical capital is B. Building extra space in the factory. By doing this, you are adding additional physical location in where your employee or worker can work.