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Basic Concepts & the Circular Flow · Question 41 of 72

Question 41

EasyOriginal question

Depreciation is

Options for question 41

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Depreciation, or consumption of fixed capital, is the expected loss of value from using capital.

  2. Loss from an earthquake is unexpected, so it is a capital loss, not depreciation.

Concept
Depreciation
Typical time
40 s
Your time
—
The rule this testsInvestment and depreciation
Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.