Asksia AI LOGO

Sia

Question
Macroeconomics
Posted 10 months ago
Angelica owns a factory. She must replace $10,000\$ 10,000 worth of equipment in the factory every year because it wears out.

What is the term used to describe when capital wears out?
Choose 1 answer:
(A) Investment
(B) Accumulation of capital
(C) Net investment
(D) Depreciation
(E) Gross investment
Sign in to unlock the answer
Answer from Sia
Posted 10 months ago
D
Key Concept
Depreciation
Explanation
Depreciation is the term used to describe the wear and tear or the reduction in the value of capital as it is used over time. In the context of Angelica's factory, the $10,000 worth of equipment that needs to be replaced each year due to wear and tear is an example of depreciation.

Not the question you are looking for? Ask here!

Enter question by text

Enter question by image

Unlock Smarter Learning with AskSia Super!

Join Super, our all-in-one AI solution that can greatly improve your learning efficiency.

30% higher accuracy than GPT-4o
Entire learning journey support
The most student-friendly features
Study Other Question