General Studies (Uncategorized)2024
With reference to physical capital in Indian economy, consider the following pairs: Items — Category
- Farmer's plough — Working capital
- Computer — Fixed capital
- Yarn used by the weaver — Fixed capital
- Petrol — Working capital
How many of the above pairs are correctly matched?
Explanation
In the context of physical capital in the Indian economy, the correct pairings can be classified into working and fixed capital. "Farmer's plough" (fixed capital) and "computer" (fixed capital) are correctly identified as fixed capital since they are durable goods used in production for a significant duration. In contrast, "yarn used by the weaver" is not fixed capital but a component of working capital, as it is transformed into finished goods in the production process. "Petrol" also qualifies as working capital because it is a consumable input necessary for operations. Therefore, the correctly matched pairs are the computer and the farmer's plough, totaling only two pairs correctly classified.
