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

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? (a). Only one (b). Only two (c). Only three (d). All four Explanation: Farmer’s plough - Working capital: Incorrect. A plough is a durable asset used repeatedly, so it's fixed capital. Computer - Fixed capital: Correct. A computer is a durable asset used for a long time in production. Yarn used by the weaver - Fixed capital: Incorrect. Yarn is a raw material consumed in the production process, so it's working capital. Petrol - Working capital: Correct. Petrol is consumed during the production process and needs to be replenished regularly Only two pairs (Computer - Fixed capital and Petrol - Working capital) are correctly matched.