If net investment is zero but gross investment is very large, what is the correct interpretation?
Answer and explanation
Correct answer: पूंजी में शुद्ध वृद्धि नहीं हुई क्योंकि सकल निवेश ने केवल मूल्यह्रास की भरपाई की
Zero net investment means gross investment equals depreciation. An economy may spend a large amount replacing worn-out machines and equipment, yet those purchases only preserve the existing capital stock rather than expand it. Therefore large gross investment can coexist with no net addition. It does not imply zero depreciation or zero consumption.
Frequently asked questions
What is the correct answer to this question?
पूंजी में शुद्ध वृद्धि नहीं हुई क्योंकि सकल निवेश ने केवल मूल्यह्रास की भरपाई की
Why is this the correct answer?
Zero net investment means gross investment equals depreciation. An economy may spend a large amount replacing worn-out machines and equipment, yet those purchases only preserve the existing capital stock rather than expand it. Therefore large gross investment can coexist with no net addition. It does not imply zero depreciation or zero consumption.
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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