When can net investment not be greater than gross investment?
Answer and explanation
Correct answer: जब मूल्यह्रास धनात्मक हो
The relationship is net investment = gross investment − depreciation. When depreciation is positive, a positive amount is subtracted from gross investment, so net investment is strictly lower than gross investment. Changes in consumption, exports, or imports do not determine this mathematical comparison. Therefore positive depreciation is the relevant condition and option A is correct.
Frequently asked questions
What is the correct answer to this question?
जब मूल्यह्रास धनात्मक हो
Why is this the correct answer?
The relationship is net investment = gross investment − depreciation. When depreciation is positive, a positive amount is subtracted from gross investment, so net investment is strictly lower than gross investment. Changes in consumption, exports, or imports do not determine this mathematical comparison. Therefore positive depreciation is the relevant condition and option A is correct.
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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