If a machine becomes old and less useful, what is this related to?
Answer and explanation
Correct answer: Depreciation
Depreciation is the decline in the value or productive usefulness of a fixed capital asset because of use, age, normal wear, or obsolescence. An old machine becoming less useful is therefore a direct example. Gross investment refers to spending on new capital, while net exports and national debt are different macroeconomic concepts.
Frequently asked questions
What is the correct answer to this question?
Depreciation
Why is this the correct answer?
Depreciation is the decline in the value or productive usefulness of a fixed capital asset because of use, age, normal wear, or obsolescence. An old machine becoming less useful is therefore a direct example. Gross investment refers to spending on new capital, while net exports and national debt are different macroeconomic concepts.
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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