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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 Fixed Capital.
Fixed capital is a genuine, tangible asset employed as a production tool and is long-lasting or not completely used at one time. This contrasts with working capital, which includes raw materials, cost of operations, etc. Investments in things like tractors, computers, generators, or even buildings are, in 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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Which of the following is not a Fixed Capital ?