JKSSB Written 2022
Answer & Explanation
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Correct Answer:
Option A —
Fixed Capital
Why it is Fixed CapitalFixed Capital refers to assets that are used in the production process over a long period (usually more than one year). They are "fixed" because they are not consumed or exhausted in a single production cycle.
Longevity: Machinery, factories, and buildings stay in the business for years.
Purpose: These are specifically designed to increase the "productive potential" or the capacity of an economy to produce more goods and services in the future.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.