Question
With reference to physical capital in the Indian economy, consider the following pairs:
Items | Category
1. Farmer’s plow | Working capital
2. Computer | Fixed capital
3. Yarn used by the weaver | Fixed capital
4. Petrol | Working capital
How many of the above pairs are correctly matched?
Correct Answer — B
Explanation
A computer (Fixed capital) and petrol (Working capital) are matched correctly, but a plough is actually fixed capital (a long-term asset) while yarn is a working-capital input, not fixed.