|
|
Items |
In crores |
|
1 |
Private final consumption expenditure |
397 |
|
2 |
Exports |
28 |
|
3 |
Govt. Final consumption expenditure |
919 |
|
4 |
Gross fixed capital formation |
764 |
|
5 |
Opening stock |
30 |
|
6 |
Closing stock |
35 |
|
7 |
Consumption of fixed capital |
100 |
|
8 |
Imports |
50 |
|
9 |
Net factor income from abroad |
(-)200 |
|
10 |
Subsidies |
40 |
|
11 |
Indirect taxes |
45 |
Choose the correct word for consumption of fixed capital.
Answer & explanation
Correct answer: option 3
Depreciation is also known as consumption of fixed capital. Since the capital which is used to carry out production undergoes wear and tear, the producer has to undertake replacement investments to keep the value of capital constant. The replacement investment is same as depreciation of capital.