Concept:
In an AC circuit, the total current can be resolved into two mutually perpendicular components:
\[
I= \text{Active Current} + \text{Wattless Current}
\]
The active current contributes to real power consumption.
The wattless current contributes only to reactive power.
If
\[
I=\text{Total current}
\]
and
\[
I_w=\text{Wattless current}
\]
then
\[
I_a=\sqrt{I^2-I_w^2}
\]
The power factor is
\[
\cos\phi=\frac{I_a}{I}
\]
Step 1: Write the given values.
\[
I=2\,A
\]
\[
I_w=\sqrt3\,A
\]
Step 2: Calculate the active current component.
Using
\[
I_a=\sqrt{I^2-I_w^2}
\]
\[
=\sqrt{(2)^2-(\sqrt3)^2}
\]
\[
=\sqrt{4-3}
\]
\[
=1\,A
\]
Step 3: Calculate the power factor.
\[
\cos\phi=\frac{I_a}{I}
\]
\[
=\frac{1}{2}
\]
\[
=0.5
\]
Step 4: State the answer.
Hence the power factor of the circuit is
\[
\boxed{0.5}
\]