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?

Fixed capital refers to long-term assets used in production that provide benefits over multiple production cycles. Examples include buildings, machinery, and equipment.

Working capital refers to short-term assets used in day-to-day operations and consumed within a single production cycle. Examples include raw materials and inventory.

• Pair 1: Farmer's plough is a fixed asset, providing benefit over multiple production cycles. Thus, it is fixed capital, not working capital. Pair 1 is not correctly matched.
• Pair 2: A computer is a fixed asset used over a long period. Thus, it is fixed capital. Pair 2 is correctly matched.
• Pair 3: Yarn used by a weaver is a raw material consumed in a single production cycle. Thus, it is working capital, not fixed capital. Pair 3 is not correctly matched.
• Pair 4: Petrol is a raw material consumed in a single production cycle. Thus, it is working capital. Pair 4 is correctly matched.

Therefore, only two pairs are correctly matched.