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?
* Farmer's plough - Working capital - Incorrect: A farmer's plough is a long-term asset used repeatedly over time, making it fixed capital. * Computer - Fixed capital - Correct: A computer is a long-term asset used over a period of time, making it fixed capital. * Yarn used by the weaver - Fixed capital - Incorrect: Yarn is consumed in the production process and needs to be replaced regularly, making it working capital. * Petrol - Working capital - Correct: Petrol is consumed in the production process and needs to be replenished regularly, making it working capital. Therefore, only two pairs are correctly matched.