. Evaluate: “Though net investment can be positive, negative, or zero, it is impossible for gross investment to be less than zero.” This statement is multiple choice 2correct, because depreciation cannot exceed gross investment.incorrect, because depreciation cannot exceed gross investment.correct, because depreciation cannot be less than zero.incorrect, because net investment is sometimes greater than gross investment.
Question
. Evaluate: “Though net investment can be positive, negative, or zero, it is impossible for gross investment to be less than zero.” This statement is multiple choice 2correct, because depreciation cannot exceed gross investment.incorrect, because depreciation cannot exceed gross investment.correct, because depreciation cannot be less than zero.incorrect, because net investment is sometimes greater than gross investment.
Solution
The statement is correct, because depreciation cannot exceed gross investment.
Similar Questions
a. Evaluate: “In 1933 net private domestic investment was negative R6 billion. This means that in that particular year the economy produced no capital goods at all.” This statement is multiple choice 1correct, because negative net investment means the economy produced no new capital goods in that year.incorrect, because negative net investment does not mean the economy produced no new capital goods in that year.incorrect, because gross investment must have exceeded depreciation.correct, because gross investment must have exceeded depreciation.
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