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Q.

Which of the following is not a fixed capital?


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a

Tractors

b

Computers

c

Wool

d

Mills 

answer is C.

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Detailed Solution

Wool is not a fixed capital.
Fixed capital is a genuine, tangible asset employed as a production tool that is long-lasting or not completely used at once. This contrasts with working capital, which includes raw materials, cost of operations, etc. Investments in things like tractors, computers, generators or even buildings are, for the long run - they are durable. In contrast, raw materials like wool, grain, cotton or milk are not durable. They can be put into use in production only once.
 
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