Depreciation refers to normal wear and tear of capital goods during production (A and B), estimated by dividing the cost over useful life (E). Accidents (C) and sudden technological changes (D) are capital losses, not depreciation. Hence A, B, E only.
Which of the following explains the concept of depreciation: A. An annual allowance for wear and tear of a capital good. B. The capital good…
CUET UG 2022 — Economics Macro
2022mcqmedium
Which of the following explains the concept of depreciation:
A. An annual allowance for wear and tear of a capital good.
B. The capital good gradually used up in each year's production process.
C. Cost of replacement of a capital good due to an accident.
D. Fall in the value of fixed asset due to unexpected change in technology.
E. Cost of the good divided by number of years of its useful life.
Choose the correct answer from the options given below:
Official previous-year question
Verified 13 Jul 2026.
Options
- A
A,B,C only
- B
A,B,D only
- C
A,B,E only
- D
A,C,E only
Did you get this right?
Sign in to track your attempts and accuracy.
Your note
Sign in to keep a private note on this question. Nothing you write is ever public.
CUET UG Macro in other years
More CUET UG Macro questions
Caculate Net National Product at Market Price (NNP$_{MP}$). 1. Rs. 3000 crores 2. Rs. 3200 crores 3. Rs. 3137 crores 4. Rs. 3237 crores
2025medium
Central banks intervene to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate. What is this move called?
2025medium
At the equilibrium point when C=100+0.5 Y and I= 200, saving will be........................
2025medium
The level of output is determined by the .....
2025medium
The rate at which Reserve Bank of India gives loans to the commercial Bank for longer duration: 1. Repo Rate. 2. Reverese Repo Rate. 3. Bank Rate. 4. Saving Rate.
2025easy
Other Economics topics for CUET UG
Keep practicing Macro
Work through every CUET UG Macro PYQ, year by year.