All the capital Goods Produced in a year do not constitute
net addition to the capital stock already existing . True/ false?
Answers
Answered by
8
Answer:
true
Explanation:
Answered by
3
In Economics,net addition or investment refers to the total yearly addition of capital stock produced in the economy less all the depreciated capital stock in the economy within the same time period.Hence,the statement given is True.
Explanation:
The total addition of all the capital stock generated in the economy in a year into the existing capital stock of the economy is termed as Gross Addition or Investment.Now,gross investment also includes the capital assets or stock that have depreciated with use over time but net addition or investment does not.It deducts all the depreciated capital assets and stock from gross addition or investment to calculate the total capital stock in the economy.
Similar questions