Question

______ is that capital which is used again and again in the production process.

विकल्प

• Sunk capital

• Floating capital

• Fixed capital

• Remunerative capital

Answer 1

Fixed capital is that capital which is used again and again in the production process.

Explanation:

Fixed capital is that capital which is used again and again in the production process.

Examples include machines, office furniture, factory buildings, etc.

Fixed capital is durable and lasts over years, unlike circulating capital which gets used up in a single production cycle.

This characteristic makes fixed capital different from other types such as sunk capital which is specialized and for a single use, floating capital which can be used for various purposes and remunerative capital which pays for labor. 

Hence, fixed capital is repeatedly used in production and assists in producing goods over time.