Q1
The capital that is consumed by an economy or a firm in the production process is known as
A.
Capital loss
B.
Production cost
C.
Dead-weight loss
D.
Depreciation
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The capital that is consumed by an economy or a firm in the production process is known as Depreciation. In economics, depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question.