WAEC Economics 2023 Question 3

Question 3

Theory of Production

Which of the following items is not classified as working capital?

  1. A.Equipment
  2. B.Fuel
  3. C.money to pay wages
  4. D.Semi-finished goods
Show the answer and explanation

Answer: A (Equipment)

Explanation

Equipment is used again and again, so it is fixed capital; the others are working (circulating) capital.