With reference to physical capital in Indian economy, consider the following pairs: <table><tr><th></th><th>Items</th><th>Category</th></tr><tr><td>1.</td><td>Farmer's plough</td><td>Working capital</td></tr><tr><td>2.</td><td>Computer</td><td>Fixed capital</td></tr><tr><td>3.</td><td>Yarn used by the weaver</td><td>Fixed capital</td></tr><tr><td>4.</td><td>Petrol</td><td>Working capital</td></tr></table> How many of the above pairs are correctly matched?
AOnly one
BOnly two
COnly three
DAll four
Answer & Solution
Correct answer: B. Only two
Answer: B. Only two pairs are correctly matched (rows 2 and 4).
Fixed capital: durable assets used repeatedly over many production cycles (machinery, buildings, vehicles). Working capital: inputs consumed within a single production cycle (raw materials, fuel, money for wages).
(1) Farmer's plough - Working capital: WRONG. A plough is a durable tool used repeatedly over many seasons. It is FIXED capital, not working capital.
(2) Computer - Fixed capital: CORRECT. A computer is used over many years for production; classic fixed capital.
(3) Yarn used by weaver - Fixed capital: WRONG. Yarn is consumed in each piece of cloth woven; it is WORKING capital, not fixed.
(4) Petrol - Working capital: CORRECT. Petrol is consumed in a single use as fuel; classic working capital.
So 2 correctly matched: rows 2 and 4.
Source: NCERT Class 9 Economics Ch 1 (Story of Village Palampur) + standard economics textbooks.
Related questions
Selling part of the equity of public sector enterprises to the public is called:Before reforms, India protected industry through tight import controls and:As an immediate step in 1991, the rupee was:GST is meant to create one nation, one tax and one:GST came into effect from:The Goods and Services Tax Act was passed by Parliament in:Taxes levied on commodities are called:Moderate income tax rates are believed to encourage savings and: