Question 26
MediumOriginal questionRead the two statements and choose the correct option.
I. A capital good is used up completely in one year of production.
II. A capital good loses some value each year through normal wear and tear.
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Capital goods last for many years, so I is false.
The yearly fall in value from use is depreciation, so II is true.
- Concept
- Capital goods wear out slowly
- Typical timeTypical
- 70 s
- Your timeYours
- —
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