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Basic Concepts & the Circular Flow · Question 42 of 72

Question 42

EasyOriginal question

Gross investment − depreciation =

Options for question 42

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. Part of gross investment only replaces worn-out capital; that part equals depreciation.

  2. What is left is the true addition to capital: net investment.

Concept
Gross and net investment
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.