Economics: An introduction
1 solved SSC CGL Economy previous year questions on Economics: An introduction, each with the correct answer and a full explanation.
Q1
The consumption of fixed capital is also known as _________.
✓ Correct answer: a) depreciation
ExplanationConsumption of fixed capital is also known as depreciation.Depreciation refers to the gradual decrease in the value of physical assets over time.It accounts for the cost of using and maintaining assets in the production process.Appreciation refers to the increase in the value of an asset or currency over time, typically due to factors such as market demand, economic conditions, or improved performance.Gross investment refers to the total spending on acquiring new capital goods, including replacements and additions, within an economy over a specific period.Hence the correct answer is "depreciation".
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