The 'net investment' is equal to gross investment minus: MCQ with Answer and Explanation

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The 'net investment' is equal to gross investment minus:

A. savings

B. taxes

C. consumption

D. depreciation

Answer: Option D

Solution (By JKSSB Mock Tests)

Net investment = gross investment - depreciation.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'Finance Commission' recommends distribution of which tax proceeds between the Centre and states?

A. net proceeds of divisible taxes

B. corporate tax only

C. central excise duties only

D. Customs duties only

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Correct Answer: Option A

Explanation:
The Finance Commission recommends distribution of net proceeds of divisible taxes between Centre and states.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Trade Receivables Discounting System' platform helps MSMEs by:

A. insuring their factories

B. providing land

C. discounting their receivables from corporate buyers

D. providing direct subsidies

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Correct Answer: Option C

Explanation:
TReDS helps MSMEs obtain working capital by discounting their receivables.

This question belongs to: Economy GK Economy Set 1

Question #3

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The concept of 'Network Externalities' implies that:

A. Externalities are always negative

B. The value of a good decreases with the number of users

C. The value of a good or service increases with the number of other users

D. Only production externalities matter

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Correct Answer: Option C

Explanation:
Network externalities exist when the utility that a user derives from a good or service depends positively on the number of other users of the same or compatible goods.

This question belongs to: Economy GK Economy Set 1

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