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If net investment is ₹150 crore and gross investment is also ₹150 crore, what can be concluded about depreciation?

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Answer and explanation

Correct answer: मूल्यह्रास 0 है

Use net investment = gross investment − depreciation. Substituting the given values gives 150 = 150 − depreciation, so depreciation must be zero. If depreciation were positive, net investment would be smaller than gross investment. Therefore ₹150 crore and ₹300 crore cannot fit the stated relationship, and a negative depreciation value is not appropriate here.

Related tags

NumericalZero-DepreciationGross-NetNational Income And Related AggregatesEconomicsClass 11 Mcq

Frequently asked questions

What is the correct answer to this question?

मूल्यह्रास 0 है

Why is this the correct answer?

Use net investment = gross investment − depreciation. Substituting the given values gives 150 = 150 − depreciation, so depreciation must be zero. If depreciation were positive, net investment would be smaller than gross investment. Therefore ₹150 crore and ₹300 crore cannot fit the stated relationship, and a negative depreciation value is not appropriate here.

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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