Explanation
Capital goods are those final goods which are used in the process of production for several years and are of higher value. These goods are fixed assets of the producers. Use of these goods leads to depreciation. Hence, unsold stock of goods lying with the seller as unsold stock is an investment for the seller.Hence, correct answer is option C.
Gross Investment is referred to as the total expenditure that is made for buying capital goods over a time period, without accounting for depreciation.Net Investment = (net working capital + fixed assets)
So, Gross investment = net investment + depreciation
Hence, C is the correct option.
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