UPSC Prelims 2024·GS1·economy·basic concepts

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?

Dalvoy logo
Reviewed by Dalvoy
UPSC Civil Services preparation
Last updated 23 May 2026, 3:31 pm IST
  1. AOnly one
  2. BOnly twoCorrect
  3. COnly three
  4. 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). 1. **Farmer's plough — Working capital: Incorrect.** A plough is a durable implement used over many seasons; it is **Fixed capital**. 2. **Computer — Fixed capital: Correct.** Computers are durable equipment used over multiple production cycles. 3. **Yarn used by the weaver — Fixed capital: Incorrect.** Yarn is a raw material consumed when cloth is woven; it is **Working capital**. 4. **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.
economy: With reference to physical capital in Indian economy, consider the following pairs: Items | Category 1. Farmer's plough

Related questions

More UPSC Prelims practice from the same subject and topic.