Which statement correctly relates depreciation and replacement investment?
Answer and explanation
Correct answer: प्रतिस्थापन निवेश मूल्यह्रास से हुई पूंजी-हानि की भरपाई करता है
Replacement investment purchases or produces new capital goods to maintain the existing capital stock after assets wear out or become obsolete. Depreciation records the loss of value or productive service of those assets, so replacement investment is directly related to offsetting it. Consumption and wages are different concepts and are not synonyms for replacement investment or depreciation.
Frequently asked questions
What is the correct answer to this question?
प्रतिस्थापन निवेश मूल्यह्रास से हुई पूंजी-हानि की भरपाई करता है
Why is this the correct answer?
Replacement investment purchases or produces new capital goods to maintain the existing capital stock after assets wear out or become obsolete. Depreciation records the loss of value or productive service of those assets, so replacement investment is directly related to offsetting it. Consumption and wages are different concepts and are not synonyms for replacement investment or depreciation.
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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