Q47 · UPSC Prelims 2024 · Set A · Economy

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With reference to physical capital in Indian economy, consider the following pairs:Items Category1.Farmer's plough Working capital2.Computer Fixed capital3.Yarn used by the weaver Fixed capital4.Petrol Working capitalHow many of the above pairs are correctly matched?

A Only one
B Only two
C Only three
D All four

Correct answer: (b) Only two

Explanation

  1. A

    Only one

    Only one. Two pairs are right.

  2. B

    Only two

    Only two. Computer is fixed capital; petrol is working capital. Plough is fixed, not working; yarn is working, not fixed.

  3. C

    Only three

    Only three. Pairs 1 and 3 are swapped types.

  4. D

    All four

    All four. Farmer’s plough is a tool (fixed); yarn is a raw material (working).

Summary. Official key is (b) only two. Fixed capital lasts over production cycles (computer, plough). Working capital is used up (yarn, petrol). Pair 2 (computer–fixed) and pair 4 (petrol–working) match. Pair 1 wrongly calls the plough working capital; pair 3 wrongly calls yarn fixed capital.

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