What can be called the amount of capital consumption?
Answer and explanation
Correct answer: Depreciation
Capital consumption is the amount of fixed capital used up during production or lost through normal wear, age, and obsolescence. In national-income accounting this is called depreciation or consumption of fixed capital. Exports are foreign sales, wages pay labour services, and interest is a return on lending; none measures the wearing out of capital.
Frequently asked questions
What is the correct answer to this question?
Depreciation
Why is this the correct answer?
Capital consumption is the amount of fixed capital used up during production or lost through normal wear, age, and obsolescence. In national-income accounting this is called depreciation or consumption of fixed capital. Exports are foreign sales, wages pay labour services, and interest is a return on lending; none measures the wearing out of 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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