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

The 'net investment' is equal to gross investment minus:
A. consumption
B. taxes
C. savings
D. depreciation
Answer: Option D
Solution (By JKSSB Mock Tests)
Net investment = gross investment - depreciation.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of the 'Universal Basic Services' proposal?
A. Only targeted residual welfare
B. Public provision of a range of essential services free at the point of use as a complement or alternative to basic income
C. Only cash transfers without any public services
D. Only private provision of all services

Correct Answer: Option B


Explanation:
Universal basic services advocates the collective provision of a set of essential services—such as health, education, housing, transport and information—available to all citizens free or at low cost.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on government fees such as passport and visa is:
A. 18%
B. exempt
C. 5%
D. 0%

Correct Answer: Option B


Explanation:
Government fees like passport and visa are exempt from GST.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following best explains the concept of 'Adverse Selection'?
A. Situation where one party has more information before entering a contract
B. Perfect information leading to efficient outcomes
C. Equal risk sharing between parties
D. Change in behaviour after a contract is signed

Correct Answer: Option A


Explanation:
Adverse selection occurs when asymmetric information exists before a contract is signed, leading to the selection of undesirable parties (e.g., high-risk individuals buying more insurance).

This question belongs to: Economy GK Economy Set 1