In which option is depreciation misunderstood?
Answer and explanation
Correct answer: मूल्यह्रास घरेलू भोजन पर किया गया खर्च है
Depreciation, also called consumption of fixed capital, records the decline in the value or service potential of fixed assets because of use, wear and obsolescence. It is deducted from gross investment to obtain net investment. Spending on household food is consumption expenditure, not a loss in the value of capital assets, so option D misunderstands depreciation.
Frequently asked questions
What is the correct answer to this question?
मूल्यह्रास घरेलू भोजन पर किया गया खर्च है
Why is this the correct answer?
Depreciation, also called consumption of fixed capital, records the decline in the value or service potential of fixed assets because of use, wear and obsolescence. It is deducted from gross investment to obtain net investment. Spending on household food is consumption expenditure, not a loss in the value of capital assets, so option D misunderstands depreciation.
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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