With reference to physical capital in Indian economy, consider the following pairs: Items | Category 1. Farmer's plough | 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?
- AOnly one
- BOnly twoCorrect
- COnly three
- DAll four
Explanation
Fixed capital refers to durable assets used in production over many cycles (machinery, tools, buildings). Working capital refers to inputs consumed in a single production cycle (raw materials, fuel).
-
Farmer's plough — Working capital: Incorrect. A plough is a durable implement used over many seasons; it is Fixed capital.
-
Computer — Fixed capital: Correct. Computers are durable equipment used over multiple production cycles.
-
Yarn used by the weaver — Fixed capital: Incorrect. Yarn is a raw material consumed when cloth is woven; it is Working capital.
-
Petrol — Working capital: Correct. Petrol is consumed in a single use; it is Working capital.
Hence, only pairs 2 and 4 are correctly matched — Only two.
Related questions
More UPSC Prelims practice from the same subject and topic.
- Prelims 2024GS1economy
The total fertility rate in an economy is defined as:
- Prelims 2024GS1economy
Consider the following: 1. Exchange-Traded Funds (ETF) 2. Motor vehicles 3. Currency swap Which of the above is/are considered financial instruments?
- Prelims 2024GS1economy
With reference to the sectors of the Indian economy, consider the following pairs: Economic activity | Sector 1. Storage of agricultural produce | Secondary 2. Dairy farm | Primary 3. Mineral explorat…
- Prelims 2024GS1economy
Which one of the following is the correct description of “100 Million Farmers”?
- Prelims 2024GS1economy
Recently, the term "pumped-storage hydropower" is actually and appropriately discussed in the context of which one of the following?
- Prelims 2024GS1economy
With reference to the Indian economy, "Collateral Borrowing and Lending Obligations" are the instruments of: