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    Question

    In the production process, the capital that is consumed

    by the economy or a firm is called
    A Production Cost Correct Answer Incorrect Answer
    B Depreciation Correct Answer Incorrect Answer
    C Capital Loss Correct Answer Incorrect Answer
    D Dead-Weight Loss Correct Answer Incorrect Answer

    Solution

    The capital that is consumed by an economy or a firm in the production process is known as Depreciation. In economics, 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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