The change in the value of capital is
A)saving.
B)net investment.
C)depreciation.
D)wealth.
E)gross investment.

Question

Quizplus · Accepted Answer

The change in the value of capital is called net investment, which is the difference between gross investment (the total amount spent on new capital) and depreciation (the decrease in the value of existing capital due to wear and tear or obsolescence). Option A (saving) refers to income not spent on consumption, option C (depreciation) is only one component of net investment, option D (wealth) is a broader concept that includes assets and liabilities beyond just capital, and option E (gross investment) does not account for depreciation.

The Change in the Value of Capital Is