The decrease in the value of the capital that results from its use and obsolescence is
A) appreciation.
B) deconstruction.
C) depreciation.
D) gross investment.
E) net investment.

Question

Quizplus · Accepted Answer

Depreciation refers to the decrease in the value of capital due to use and obsolescence. Alternatively, appreciation is the increase in the value of capital, deconstruction is the process of taking apart a structure or asset, gross investment is the total value of new capital added to an economy, and net investment is the gross investment minus depreciation.

The Decrease in the Value of the Capital That Results