question_answer

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Tools, Machines, Buildings: Tools and machines range from very simple tools such as a fancier’s plough to sophisticated machines such as generators, turbines, computers, etc. Tools, machines, buildings can be used in production over many years, and are called fixed capital.

Raw Materials and Money in Hand

Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter. Also, some money is always required during production to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Unlike tools, machines and buildings, these are used up in production.

A small farmer has 2 hectares of land to cultivate wheat crop his land comes under which type of factor of production?

 

A) Fixed capital

B) Working capital

C) Natural resource

D) Human capital