If gross investment is 300 crore and depreciation is 120 crore in an economy, what will net investment be?
Answer and explanation
Correct answer: 180 crore
Net investment is the part of gross investment that remains after replacing capital consumed through depreciation. Use the formula net investment = gross investment − depreciation. Thus, net investment = 300 − 120 = 180 crore. Because the result is positive, the economy adds 180 crore to its capital stock after covering the depreciated portion.
Frequently asked questions
What is the correct answer to this question?
180 crore
Why is this the correct answer?
Net investment is the part of gross investment that remains after replacing capital consumed through depreciation. Use the formula net investment = gross investment − depreciation. Thus, net investment = 300 − 120 = 180 crore. Because the result is positive, the economy adds 180 crore to its capital stock after covering the depreciated portion.
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.
