Depreciation equals ________. a. capital minus gross investment b. capital minus net investment c. net investment minus gross investment d. gross investment minus net investment
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A: Depreciation is the decrease in value of an asset due to wear and tear.
The decrease in value of capital asset over time period is know as the depreciation.
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- GDP is $5 trillion. Depreciation is $1 trillion. Gross output is $17.25 trillion. What is th value of all stages of production and distribution except for final sales of goods and services?Calculate the value of an economy's rate of depreciation, if its saving rate is 9%, total capital stock is 1500 units, its labour force includes 100 workers and total output is 500.Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70
- MC Qu, Son If in some year gross investment was $240 billion and net investment was $130 billion, then in that year the country's capital stock Multiple Choice decreased by $110 billion. may have either increased or decreased. increased by $130 billion. increased by $110 billion. O words & Accessibility Investigate pec Page 1 of 3 problems been working. Researchers have also le. rates, greater political unrest, and hig Exit Assignment 99+ 十Excluding indirect business taxes and depreciation, Gross Domestic Income (GDI) Select one: a. never equals GDP. b. would equal GDP if there was no depreciation. c. is the sum of all income paid to the factors of production. d. cannot be computed.If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is Select one: a. $250 billion b. $175 billion. OC. $150 billion. d. $0.7 billion.
- If depreciation exceeds gross investment, The difference between GDP and NDP is smaller than gross investment. Gross investment is negative. The nation's capital stock is being depleted. O Net investment exceeds depreciation.7. Items Income fro employment & self employment Income from rent, dividend & interest Companies profit : i. Distributed profits ii. Undistributed profits Depreciation Transfer payment Personal income tax EPF Net factor income abroad Calculate : a. GDI b. GNI c. NNI d. NI e. Personal income f. Disposable income RM Millions 25 000 10 000 12 000 11 000 1 000 100 200 100 17 000Given the following information: a. Transfer Payments = $54 %3D b. Interest Income (i) = $150 %3D c. Depreciation = $36 %3D d. Wages (W) = $67 e. Gross Private Investment = $124 f. Business Profits (PR) = $200 %3D g. Indirect Taxes = $74 h. Rental Income (R) =$75 i. Net Exports = $18 %3D j. Net Foreign Factor Income = $12 %3D k. Government Purchases = $156 I. Household Consumption = $304 Calculate GDP at MP, GDP at FC using the two approaches and NNP at FC.
- Planned investment spending is a. Actual investment in a period b. Always equal to saving c. Investment spending that businesses plan to undertake during a period d. Investment spending minus depreciation in a periodSuppose, the GDP of a country is 50 million, net factor income from abroad is 20 million and depreciation charges are 10 million. Compute the net national product of the country. a. NNP = 70 million b. NNP = 80 million c. NNP = 60 million d. NNP = 50 millionIf a consumer purchases a foreign-produced hair dryer at a department store, the value of the hair dryer is: a. included in both consumer purchases and exports. b. added to capital investment in equipment but then subtracted from consumer purchases. c. included in consumer purchases but then subtracted as part of imports. d. added to imports but then subtracted as part of exports. Please explain your answer