With reference to physical capital in 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?

Fixed capital refers to durable goods used in production over many years (tools, machines, buildings), while working capital refers to raw materials and money used up in a single production cycle. A farmer's plough is a durable tool used repeatedly — it is fixed capital, not working capital — so pair 1 is wrong. A computer is a durable tool used over many years — it is fixed capital — pair 2 is correct. Yarn used by the weaver is a raw material consumed in producing cloth — it is working capital, not fixed capital — pair 3 is wrong. Petrol is consumed in use (single-use raw material/fuel) — it is working capital — pair 4 is correct. So only two pairs (2 and 4) are correctly matched.