Define gross investment and net investment. Discuss the relationship between gross investment and net investment
What will be an ideal response?
Gross investment is the total amount spent on new capital goods to increase the quantity of capital and replace the depreciated capital. Net investment is the amount spent on new capital that exceeds the value of the depreciated capital or, in other words, net investment equals gross investment minus depreciation. Net investment is equal to the change in the capital stock.
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If Sam does not have a job and is NOT currently looking for work but has looked in the past, he is considered
A) unemployed. B) not in the labor force. C) unemployed and in the labor force. D) unemployed and not in the labor force.
Diseconomies of scale exists over the range of output for which the long-run average cost curve is:
a. rising. b. constant. c. falling. d. None of the answers are correct.