If an old machine is sold and a new machine is bought, what determines its treatment as investment in national income accounting?
Answer and explanation
Correct answer: नई पूंजीगत वस्तु का उत्पादन और पूंजी-भंडार पर उसका प्रभाव
National income accounting focuses on whether a newly produced capital good has been added and how the capital stock changes. Reselling an existing machine is normally only a transfer of ownership, not new investment by itself. The machine’s colour, the owner’s name, or the size of a receipt does not determine its classification as investment.
Frequently asked questions
What is the correct answer to this question?
नई पूंजीगत वस्तु का उत्पादन और पूंजी-भंडार पर उसका प्रभाव
Why is this the correct answer?
National income accounting focuses on whether a newly produced capital good has been added and how the capital stock changes. Reselling an existing machine is normally only a transfer of ownership, not new investment by itself. The machine’s colour, the owner’s name, or the size of a receipt does not determine its classification as investment.
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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