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UPSC Prelims 2024 Paper-I 📅 16 Jun, 2024

With reference to physical capital in Indian economy, consider the following pairs:

ItemsCategory
1. Farmer ploughWorking capital
2. ComputerFixed capital
3. Yarn used by the weaverFixed capital
4. PetrolWorking capital


How many of the above pairs are correctly matched?

A
Only one
B
Only two
C
Only three
D
All four
Result Summary
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APEDIA

UPSC Prelims
2024 • 16 Jun, 2024 • Paper-I
With reference to physical capital in Indian economy, consider the following pairs:

ItemsCategory
1. Farmer ploughWorking capital
2. ComputerFixed capital
3. Yarn used by the weaverFixed capital
4. PetrolWorking capital


How many of the above pairs are correctly matched?
Correct Answer
Only two
Economy: Capital Types.Context: Working vs Fixed Capital.Details: Only two pairs are correctly matched. A computer is fixed capital (pair 2 is correct). Petrol ......
💡 Analysis & Explanation
Economy
Capital Types.
Context
Working vs Fixed Capital.
Details
Only two pairs are correctly matched. A computer is fixed capital (pair 2 is correct). Petrol is a consumable item and represents working capital (pair 4 is correct). A farmer plough is a durable tool, thus it is fixed capital. Yarn is a raw material used up in production, thus it is working capital.