Question

Rajat works in a textile factory. There, he dyes the fabric. Other workers are also engaged in different activities. Some workers spin the yarn, while some workers weave cloths. Some other workers like Rajat dye the fabric.Analyse the information given above and consider which one of the following factors of production is talked about :

choose the correct answer

(a) Fixed capital

(b) Working capital

(c) Human capital

(d) None of the above

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Answer 1

Answer:

both answers are right.

Explanation:

because in the textile factory, machines are used which are fixed capital and workers are also neccessary and workers are counted in working capital. so both the answers are right, but if you want only one answer     then it will be (b) working capital because in the para the narrator is talking mostly about the workers and as i told you, workers are working capital.

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Answer 2

The factor of production which is mentioned in this case is (b) Working capital.

Explanation for the answer:

• Working capital refers to the capital which is invested in the current assets of a country.
• Workers are considered as the current assets.
• They perform different tasks and perform various day to day operations.
• Hence it is working capital.
• Here, correct answer is option (b) Working capital.

Explanation for the incorrect answers:

• Fixed capital refers to the capital which is used for the fixed assets of the firm. Example- machinery, tools, etc.
• Human capital refers to the economic value of the workers having experience and skills.

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