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Question

Which of the following is not fixed capital?


A

(a) Agricultural Land

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B

(b) Tube Well

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C

C) Fertilizers and pesticides

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Solution

The correct option is C

C) Fertilizers and pesticides


Option C) Fertilizers and pesticides

Fixed capital includes the assets and capital investments, such as property, plant, and equipment (PP&E), that are needed to start up and conduct business. Fertilizers and pesticides contain chemicals. An Excess amount of these chemicals in the soil are harmful to microorganisms like bacteria which cause death and loss of fertility. Therefore, it is not a fixed capital.


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