UPSC Prelims 2024 · GS Paper I
Question 47: Economy and Social Development
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 ?
AnswerUPSC’s answer is (b).
Fixed capital is used again and again in production; working capital is used up or turned over in each production cycle. A computer is fixed capital and petrol is working capital, so pairs 2 and 4 are right. A farmer's plough is a tool used over many seasons, so it is fixed capital, not working capital. Yarn used by a weaver is a raw material, which is working capital. Remember: tools and machines are fixed; raw materials and fuel are working.
- 1. A plough lasts many seasons, so it is fixed capital.
- 2. A computer is durable equipment, so it is fixed capital.
- 3. Yarn is a raw material used up in production, so it is working capital.
- 4. Petrol is consumed in use, so it is working capital.
How you could have got this
No shortcut here: in a “how many” question, ruling out options doesn’t help. Every statement has to be judged.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong: two pairs, 2 and 4, are correct.
- (b) Right: computer as fixed capital and petrol as working capital are correct.
- (c) Wrong: the plough and the yarn are wrongly classified.
- (d) Wrong: pairs 1 and 3 are wrong.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2024, General Studies Paper I, Series A. The paper on upsc.gov.in.