Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance for wear and tear of a capital good. (b) It is based on the demand and supply of consumer goods in market. (c) It is calculated as the cost of good divided by number of years of its useful life. (d) It accounts for sudden destruction of capital caused due to natural calamities.
Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance for wear and tear of a capital good. (b) It is based on the demand and supply of consumer goods in market. (c) It is calculated as the cost of good divided by number of years of its useful life. (d) It accounts for sudden destruction of capital caused due to natural calamities.
Chapter1: Making Economics Decisions
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Which of the following statement correctly describes 'depreciation ' ?
(a) It is a monthly allowance for wear and tear of a capital good.
(b) It is based on the demand and supply of consumer goods in market.
(c) It is calculated as the cost of good divided by number of years of its useful life.
(d) It accounts for sudden destruction of capital caused due to natural calamities.
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