The total amount of plants, inventories, equipment, and buildings is called: a) Depreciation, b) Gross investment, c) Net investment, d) Capital stock

Economics Dec 14, 2020

The total amount of plants, inventories, equipment, and buildings is called:

a) Depreciation,

b) Gross investment,

c) Net investment,

d) Capital stock.

Expert Solution

The correct option is b) Gross investment,

Depreciation is the losses incurred by the firm in its assets.

Net investment is the difference between gross investment and depreciation.

Capital stock consists of assets and equipment used in production. Its difference with gross investment is the presence of the inventories and these are included in the calculation of a gross investment.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote