Which statement correctly explains the concepts of gross and net investment?
Answer and explanation
Correct answer: सकल निवेश में मूल्यह्रास सहित निवेश होता है और शुद्ध निवेश में मूल्यह्रास घटाया जाता है
Gross investment measures total investment before allowing for depreciation of existing capital. Net investment is obtained by subtracting depreciation from gross investment. Therefore, when depreciation is non-negative, gross investment is normally equal to or greater than net investment. Depreciation is not added to obtain the net measure, and the two concepts are not identical.
Frequently asked questions
What is the correct answer to this question?
सकल निवेश में मूल्यह्रास सहित निवेश होता है और शुद्ध निवेश में मूल्यह्रास घटाया जाता है
Why is this the correct answer?
Gross investment measures total investment before allowing for depreciation of existing capital. Net investment is obtained by subtracting depreciation from gross investment. Therefore, when depreciation is non-negative, gross investment is normally equal to or greater than net investment. Depreciation is not added to obtain the net measure, and the two concepts are not identical.
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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