In the national income accounts,what is depreciation called?
A) total consumption depreciation
B) capital consumption allowance
C) consumption of circulating capital
D) loss due to wear

Question

Quizplus · Accepted Answer

Depreciation in the national income accounts is called capital consumption allowance. This represents the decline in value of a capital asset due to wear and tear, obsolescence, or aging over time. The capital consumption allowance is subtracted from the gross domestic product (GDP) to arrive at net domestic product (NDP), which is a measure of the value of output produced by the economy after accounting for the capital consumed in the production process.

In the National Income Accounts,what Is Depreciation Called