Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Addition to the stock of capital of a firm is known as :

Options:

Variable

Stock

Investment

Production

Correct Answer:

Investment

Explanation:

Inventories are treated as capital. Addition to the stock of capital of a firm is known as investment. Therefore, change in the inventory of a firm is treated as investment.