Question

    What term describes the consumption of fixed capital in an economy?

    A Depreciation Correct Answer Incorrect Answer
    B Net investment Correct Answer Incorrect Answer
    C Gross investment Correct Answer Incorrect Answer
    D Appreciation Correct Answer Incorrect Answer

    Solution

    Depreciation is the economic term used to describe the consumption of fixed capital. It reflects the wear and tear or obsolescence of physical assets over time, affecting their operational efficiency and value.

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