SSC
INDIAN ECONOMY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Gross domestic capital formation is defined as
|
|
net addition to stock after depreciation
|
|
|
Flow of expenditure devoted to increased or maintaining of the capital stock
|
|
|
expenditure incurred on physical assets only
|
|
|
production exceeding demand
|
Explanation:
Detailed explanation-1: -Long definition. Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories.
Detailed explanation-2: -Gross capital formation includes depreciation i.e. consumption of fixed capital.
Detailed explanation-3: -Therefore, it includes the fixed capital formed in that period i.e. fixed assets, change in stock i.e. changes in inventories, and valuables that is valuation of sold out stocks retained.
There is 1 question to complete.