Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

What is the unforeseen obsolescence of fixed capital assets during production process known as?

Options:

Consumption of fixed capital

Revenue loss

Capital loss

None of the above

Correct Answer:

Capital loss

Explanation:

Normal wear and tear of the fixed capital assets is known as depreciation of the asset. It is a gradual process which is spread over a long period of time and is foreseen. Whereas, the unforeseen obsolescence of fixed capital assets during production process is known as capital loss.