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

UPSC · 2024 · Economy
Question:
With reference to physical capital in the Indian economy, consider the following pairs: 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?

Options

(a) Only one
(b) Only two
(c) Only three
(d) All four
Answer: (b) Only two

Explanation:
Computer and petrol are correctly matched as fixed and working capital respectively. The plough is fixed capital, and yarn is working capital.

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