If a machine becomes less useful because of technological change, which concept is it most closely related to?
Answer and explanation
Correct answer: Depreciation
Technological change can make an existing machine outdated even when it still physically works. This loss of usefulness is called obsolescence and is treated as a form or cause of depreciation of fixed capital. Buying a replacement machine may be gross investment, but the reduced usefulness itself is depreciation. Consumption and tax revenue are unrelated concepts.
Frequently asked questions
What is the correct answer to this question?
Depreciation
Why is this the correct answer?
Technological change can make an existing machine outdated even when it still physically works. This loss of usefulness is called obsolescence and is treated as a form or cause of depreciation of fixed capital. Buying a replacement machine may be gross investment, but the reduced usefulness itself is depreciation. Consumption and tax revenue are unrelated concepts.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
