The best measure of net investment is
A)Gross investment per capita.
B)Real GDP per worker.
C)Gross investment less depreciation.

Question

Quizplus · Accepted Answer

Net investment is defined as gross investment less depreciation. This is the measure that takes into account the amount of new investment made in an economy after accounting for the loss of value of existing capital stock due to wear and tear. Options A and B do not account for depreciation and therefore do not accurately reflect the true level of net investment in an economy.

The Best Measure of Net Investment Is