Depreciation refers to: O the value of leisure goods. O changes in exchange rates. O income that we earn but do not receive. O investment undertaken merely to replace worn-out capital. O the effects of government subsidy programs.
Added by Jennifer S.
Close
Step 1
Depreciation is the decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors. Show more…
Show all steps
Your feedback will help us improve your experience
Haricharan Gupta and 81 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Appreciation vs depreciation under fixed exchange rate
Haricharan G.
Depreciation is a. the amount of decline in business inventories. b. the decrease in the overall price level. c. the additional capital stock in a year. d. the amount of used up machinery in a year.
Vysakh M.
Depreciation expense is: Only an estimate. An exact calculation prepared by an appraiser. Not to be calculated unless the exact life of an asset can be determined. To be determined for all assets owned by a company.
Adi S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD