Question

The capital that is consumed by an economy or a firm in the production process is known as

A Depreciation Correct Answer Incorrect Answer
B Dead-weight loss Correct Answer Incorrect Answer
C Capital loss Correct Answer Incorrect Answer
D Production cost Correct Answer Incorrect Answer

Solution

Depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question

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