Which option gives the correct reasoning for moving from gross investment to net investment?
Answer and explanation
Correct answer: पूंजी की घिसावट अर्थात मूल्यह्रास घटाएं
Net investment is the amount of gross investment left after allowing for the wear, obsolescence, or consumption of fixed capital. Thus the correct formula is net investment = gross investment − depreciation. Consumption expenditure, indirect taxes, and exports belong to other national-income concepts and are not used to convert gross investment into net investment.
Frequently asked questions
What is the correct answer to this question?
पूंजी की घिसावट अर्थात मूल्यह्रास घटाएं
Why is this the correct answer?
Net investment is the amount of gross investment left after allowing for the wear, obsolescence, or consumption of fixed capital. Thus the correct formula is net investment = gross investment − depreciation. Consumption expenditure, indirect taxes, and exports belong to other national-income concepts and are not used to convert gross investment into net investment.
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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