{"id":92122,"date":"2025-06-01T11:15:19","date_gmt":"2025-06-01T11:15:19","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=92122"},"modified":"2025-06-01T11:15:19","modified_gmt":"2025-06-01T11:15:19","slug":"with-reference-to-physical-capital-in-indian-economy-consider-the-fol","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/","title":{"rendered":"With reference to physical capital in Indian economy, consider the fol"},"content":{"rendered":"

With reference to physical capital in Indian economy, consider the following pairs :<\/p>\n\n\n\n\n\n\n\n\n
<\/th>\nItems<\/th>\nCategory<\/th>\n<\/tr>\n<\/thead>\n
1.<\/td>\nFarmer’s plough<\/td>\nWorking capital<\/td>\n<\/tr>\n
2.<\/td>\nComputer<\/td>\nFixed capital<\/td>\n<\/tr>\n
3.<\/td>\nYarn used by the weaver<\/td>\nFixed capital<\/td>\n<\/tr>\n
4.<\/td>\nPetrol<\/td>\nWorking capital<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

How many of the above pairs are correctly matched ?<\/p>\n

[amp_mcq option1=”Only one” option2=”Only two” option3=”Only three” option4=”All four” correct=”option2″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC IAS – 2024<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
The question asks how many pairs are correctly matched. Let’s examine each pair:
\n1. Farmer’s plough is used repeatedly over many production cycles. This is a tool\/machine and is considered Fixed Capital, not Working Capital (which is consumed or transformed in the production process). So, Pair 1 is incorrectly matched.
\n2. A Computer is a durable asset used in production or work over a long period. This is correctly categorized as Fixed Capital. So, Pair 2 is correctly matched.
\n3. Yarn is a raw material that is used up or transformed during the weaving process to create fabric. This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 3 is incorrectly matched.
\n4. Petrol is a fuel that is consumed during production (e.g., running machinery, vehicles). This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 4 is correctly matched.
\nOnly pairs 2 and 4 are correctly matched. Therefore, the number of correctly matched pairs is two. Option B is the correct answer.
\n<\/section>\n
Physical capital refers to the tangible assets created by humans for use in the production of goods and services. It is broadly classified into:
\n– Fixed Capital: Assets that are used repeatedly over a long period in the production process (e.g., machinery, tools, buildings, computers).
\n– Working Capital: Assets that are consumed or transformed during the production process (e.g., raw materials, fuel, intermediate goods, cash on hand).
\n<\/section>\n
The distinction between fixed and working capital is crucial in economics as they play different roles in the production cycle and require different management strategies. Fixed capital represents long-term investments in productive capacity, while working capital ensures the smooth day-to-day operations by providing necessary inputs and liquidity. Human capital, another form of capital, refers to the skills, knowledge, and health of people, which contributes to productivity.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

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 ? [amp_mcq option1=”Only one” option2=”Only two” option3=”Only three” option4=”All four” … <\/p>\n

Detailed SolutionWith reference to physical capital in Indian economy, consider the fol<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1103,1120,1261],"class_list":["post-92122","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1103","tag-economic-development","tag-nature-of-indian-economy","no-featured-image-padding"],"yoast_head":"\nWith reference to physical capital in Indian economy, consider the fol<\/title>\n<meta name=\"description\" content=\"The question asks how many pairs are correctly matched. Let's examine each pair: 1. Farmer's plough is used repeatedly over many production cycles. This is a tool\/machine and is considered Fixed Capital, not Working Capital (which is consumed or transformed in the production process). So, Pair 1 is incorrectly matched. 2. A Computer is a durable asset used in production or work over a long period. This is correctly categorized as Fixed Capital. So, Pair 2 is correctly matched. 3. Yarn is a raw material that is used up or transformed during the weaving process to create fabric. This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 3 is incorrectly matched. 4. Petrol is a fuel that is consumed during production (e.g., running machinery, vehicles). This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 4 is correctly matched. Only pairs 2 and 4 are correctly matched. Therefore, the number of correctly matched pairs is two. Option B is the correct answer. Physical capital refers to the tangible assets created by humans for use in the production of goods and services. It is broadly classified into: - Fixed Capital: Assets that are used repeatedly over a long period in the production process (e.g., machinery, tools, buildings, computers). - Working Capital: Assets that are consumed or transformed during the production process (e.g., raw materials, fuel, intermediate goods, cash on hand).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to physical capital in Indian economy, consider the fol\" \/>\n<meta property=\"og:description\" content=\"The question asks how many pairs are correctly matched. Let's examine each pair: 1. Farmer's plough is used repeatedly over many production cycles. This is a tool\/machine and is considered Fixed Capital, not Working Capital (which is consumed or transformed in the production process). So, Pair 1 is incorrectly matched. 2. A Computer is a durable asset used in production or work over a long period. This is correctly categorized as Fixed Capital. So, Pair 2 is correctly matched. 3. Yarn is a raw material that is used up or transformed during the weaving process to create fabric. This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 3 is incorrectly matched. 4. Petrol is a fuel that is consumed during production (e.g., running machinery, vehicles). This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 4 is correctly matched. Only pairs 2 and 4 are correctly matched. Therefore, the number of correctly matched pairs is two. Option B is the correct answer. Physical capital refers to the tangible assets created by humans for use in the production of goods and services. It is broadly classified into: - Fixed Capital: Assets that are used repeatedly over a long period in the production process (e.g., machinery, tools, buildings, computers). - Working Capital: Assets that are consumed or transformed during the production process (e.g., raw materials, fuel, intermediate goods, cash on hand).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:15:19+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to physical capital in Indian economy, consider the fol","description":"The question asks how many pairs are correctly matched. Let's examine each pair: 1. Farmer's plough is used repeatedly over many production cycles. This is a tool\/machine and is considered Fixed Capital, not Working Capital (which is consumed or transformed in the production process). So, Pair 1 is incorrectly matched. 2. A Computer is a durable asset used in production or work over a long period. This is correctly categorized as Fixed Capital. So, Pair 2 is correctly matched. 3. Yarn is a raw material that is used up or transformed during the weaving process to create fabric. This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 3 is incorrectly matched. 4. Petrol is a fuel that is consumed during production (e.g., running machinery, vehicles). This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 4 is correctly matched. Only pairs 2 and 4 are correctly matched. Therefore, the number of correctly matched pairs is two. Option B is the correct answer. Physical capital refers to the tangible assets created by humans for use in the production of goods and services. It is broadly classified into: - Fixed Capital: Assets that are used repeatedly over a long period in the production process (e.g., machinery, tools, buildings, computers). - Working Capital: Assets that are consumed or transformed during the production process (e.g., raw materials, fuel, intermediate goods, cash on hand).","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/","og_locale":"en_US","og_type":"article","og_title":"With reference to physical capital in Indian economy, consider the fol","og_description":"The question asks how many pairs are correctly matched. Let's examine each pair: 1. Farmer's plough is used repeatedly over many production cycles. This is a tool\/machine and is considered Fixed Capital, not Working Capital (which is consumed or transformed in the production process). So, Pair 1 is incorrectly matched. 2. A Computer is a durable asset used in production or work over a long period. This is correctly categorized as Fixed Capital. So, Pair 2 is correctly matched. 3. Yarn is a raw material that is used up or transformed during the weaving process to create fabric. This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 3 is incorrectly matched. 4. Petrol is a fuel that is consumed during production (e.g., running machinery, vehicles). This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 4 is correctly matched. Only pairs 2 and 4 are correctly matched. Therefore, the number of correctly matched pairs is two. Option B is the correct answer. Physical capital refers to the tangible assets created by humans for use in the production of goods and services. It is broadly classified into: - Fixed Capital: Assets that are used repeatedly over a long period in the production process (e.g., machinery, tools, buildings, computers). - Working Capital: Assets that are consumed or transformed during the production process (e.g., raw materials, fuel, intermediate goods, cash on hand).","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:15:19+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/","name":"With reference to physical capital in Indian economy, consider the fol","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:15:19+00:00","dateModified":"2025-06-01T11:15:19+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The question asks how many pairs are correctly matched. Let's examine each pair: 1. Farmer's plough is used repeatedly over many production cycles. This is a tool\/machine and is considered Fixed Capital, not Working Capital (which is consumed or transformed in the production process). So, Pair 1 is incorrectly matched. 2. A Computer is a durable asset used in production or work over a long period. This is correctly categorized as Fixed Capital. So, Pair 2 is correctly matched. 3. Yarn is a raw material that is used up or transformed during the weaving process to create fabric. This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 3 is incorrectly matched. 4. Petrol is a fuel that is consumed during production (e.g., running machinery, vehicles). This is correctly categorized as Working Capital, not Fixed Capital. So, Pair 4 is correctly matched. Only pairs 2 and 4 are correctly matched. Therefore, the number of correctly matched pairs is two. Option B is the correct answer. Physical capital refers to the tangible assets created by humans for use in the production of goods and services. It is broadly classified into: - Fixed Capital: Assets that are used repeatedly over a long period in the production process (e.g., machinery, tools, buildings, computers). - Working Capital: Assets that are consumed or transformed during the production process (e.g., raw materials, fuel, intermediate goods, cash on hand).","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-physical-capital-in-indian-economy-consider-the-fol\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to physical capital in Indian economy, consider the fol"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/92122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=92122"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/92122\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=92122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=92122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=92122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}