If depreciation is deducted from gross investment, which measure is obtained?
Answer and explanation
Correct answer: शुद्ध निवेश
The standard relationship is net investment = gross investment − depreciation. Therefore, deducting depreciation from gross investment gives net investment. This measure shows the actual addition to the capital stock after allowing for the capital that has worn out or become obsolete. It does not produce total consumption, money stock, or the original gross-investment measure.
Frequently asked questions
What is the correct answer to this question?
शुद्ध निवेश
Why is this the correct answer?
The standard relationship is net investment = gross investment − depreciation. Therefore, deducting depreciation from gross investment gives net investment. This measure shows the actual addition to the capital stock after allowing for the capital that has worn out or become obsolete. It does not produce total consumption, money stock, or the original gross-investment measure.
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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