UPSC PRELIMS · ECONOMICS · INDIAN ECONOMY: PHYSICAL CAPITAL

Consider the following pairs: 1. Farmer's plough — Working capital 2. Computer — Fixed capital 3. Yarn — Fixed capital 4. Petrol — Working capital How many of the above pairs are correctly matched?

Take a breath. Choose one. Press A–D on your keyboard if you like.

EXPLANATION

A computer is fixed capital and petrol used in production is working capital. A farmer's plough is a durable productive asset and therefore fixed capital, while yarn used as an input is working capital, so only pairs 2 and 4 are correctly matched.

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