Question

Which of the following is a fixed capital?
(a) seeds
(b)tools
(c) clay
(d)yam

Answer 1

Answer:

tools is the fixed capital....

Answer 2

Option(b) is the correct answer.

Option(b) is the correct answer.tools.

• Capital refers to the assets or wealth of an individual or a company.
• Capitals are of many types like fixed capital and human capital.
• Fixed capital refers to the asset which is available at the present to provide service its values.
• Such products require a one-time investment and can be used for many years to come.
• Seeds, clay, and yam cannot be regarded as fixed capital as they are temporary.
• But tools, money, and machines can be regarded as fixed capitals, and hence the answer.

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