Depreciation is mainly related to what type of capital?
Answer and explanation
Correct answer: Fixed capital
Depreciation mainly records the loss of value or productive service of fixed capital assets such as machines, buildings, vehicles, and equipment. These assets serve production over several periods. Human capital refers to skills, working capital to short-term operating assets, and foreign capital to the source or ownership of funds; they are not the intended category here.
Frequently asked questions
What is the correct answer to this question?
Fixed capital
Why is this the correct answer?
Depreciation mainly records the loss of value or productive service of fixed capital assets such as machines, buildings, vehicles, and equipment. These assets serve production over several periods. Human capital refers to skills, working capital to short-term operating assets, and foreign capital to the source or ownership of funds; they are not the intended category here.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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