Which of the following options includes machinery, work plants, equipment, new technology, factories, buildings and goods that ar…

Economy ·Previously asked in JKSSB Sub Inspector (Executive) 2022

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Question

Which of the following options includes machinery, work plants, equipment, new technology, factories, buildings and goods that are designed to increase the economy's productive potential?

  1. A. Fixed Capital (Correct answer)
  2. B. Working Capital
  3. C. Capital Productivity
  4. D. Infrastructure

Correct Answer

Option A — Fixed Capital

Detailed Solution & Explanation

The correct answer is Fixed Capital.

Key Points

  • Fixed Capital refers to long-lasting assets used repeatedly in the production process without being consumed in a single cycle.
  • This includes machinery, equipment, factories, buildings, tools, and new technologies.
  • These assets contribute to increasing the productive potential of an economy over a long period.
  • Working Capital, by contrast, refers to raw materials, wages, and other inputs consumed in a single production cycle.