In which option is net investment the lowest?
Answer and explanation
Correct answer: Gross investment 60 and depreciation 100
Net investment equals gross investment minus depreciation. The results are A: 70 − 10 = 60, B: 90 − 80 = 10, C: 60 − 100 = −40, and D: 50 − 20 = 30. The smallest value is −40, so C is correct. It means depreciation is greater than new investment and the capital stock falls by 40 units.
Frequently asked questions
What is the correct answer to this question?
Gross investment 60 and depreciation 100
Why is this the correct answer?
Net investment equals gross investment minus depreciation. The results are A: 70 − 10 = 60, B: 90 − 80 = 10, C: 60 − 100 = −40, and D: 50 − 20 = 30. The smallest value is −40, so C is correct. It means depreciation is greater than new investment and the capital stock falls by 40 units.
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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