Question 39
HardOriginal questionAn economy's capital stock was ₹2,000 crore at the start of a year and ₹2,150 crore at the end. Depreciation during the year was ₹90 crore. What was gross investment?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Net investment = change in capital stock = 2,150 − 2,000 = ₹150 crore.
Gross investment = net investment + depreciation = 150 + 90 = ₹240 crore.
- Concept
- Gross investment from the change in stock
- Typical timeTypical
- 100 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Basic Concepts & the Circular Flow, at your own pace.