Economics · National Income
Which of the following correctly explains why depreciation is included while calculating Gross Value Added but excluded in Net Value Added?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Depreciation reflects intermediate consumption
- 2Depreciation accounts for the wear and tear of capital✓
- 3Depreciation measures capital formation
- 4Depreciation represents actual cash outflow every year
Correct answer
Depreciation accounts for the wear and tear of capital
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice National Income MCQs →Want more practice questions on National Income?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · National Income