Read the following descriptions and answer the questions that follow:

Kishora is a farm labourer. Like other such labourers, Kishora found it difficult to meet his family's needs from the wages that he received. A few years back, Kishora took a loan from the bank. This was under a government programme which was giving cheap loans to poor landless households. Kishora bought a buffalo with this money. He now sells the buffalo's milk. Further he has attached a wooden cart to his buffalo and uses it to transport various items. Once a week he goes to the river Ganga to bring back clay for the potter. Or sometimes he goes to Shahpur with a load of jaggery or other commodities. Every month he gets some work in transport. As a result, Kishora is able to earn more than what he used to do some years back.


1) What is Kishora's fixed capital?


2) What do you think would be his working capital?


3) In how many production activities is Kishora involved?


4). Would you say that Kishora has benefited from better roads in Palampur ?

1) Buffalo and wooden cart is Kishora’s fixed capital.


2) Money that is being spent on the maintenance of the bullock and the cart is his working capital.


3) Kishora’s involvement is now in three production activities.


4) Yes, Kishora has benefitted from better roads because of better roads in Palampur; he is able to transport different items which will increase his income.


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