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Question

Which of the following is a fixed capital?
  1. Clay
  2. Tools
  3. Yarn
  4. Seeds

A
Tools
B
Clay
C
Seeds
D
Yarn
Solution
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Fixed capital includes the assets that are needed to start up and conduct business. These assets are considered fixed as they are not consumed or destroyed during the actual production of a good or service but have a reusable value.

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