In which option is net investment the highest?
Answer and explanation
Correct answer: Gross investment 160 and depreciation 20
Net investment is calculated as gross investment minus depreciation. The four values are 200 − 90 = 110, 160 − 20 = 140, 180 − 60 = 120, and 150 − 50 = 100. Since 140 is the largest result, option B is correct. The other options leave smaller additions to the capital stock after accounting for worn-out capital.
Frequently asked questions
What is the correct answer to this question?
Gross investment 160 and depreciation 20
Why is this the correct answer?
Net investment is calculated as gross investment minus depreciation. The four values are 200 − 90 = 110, 160 − 20 = 140, 180 − 60 = 120, and 150 − 50 = 100. Since 140 is the largest result, option B is correct. The other options leave smaller additions to the capital stock after accounting for worn-out capital.
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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