Distinguish between gross and net investment.

Advertisement

Distinguish between gross and net investment.

  1. Gross investment is the total amount spent on capital goods in a particular production period which is generally one year. On the other net investment is the investment for raising the stock of capital in a particular year.
  2. Gross investment includes the amount spent both by the private entrepreneurs. On the other hand net investment involves construction of new factory buildings, procurement of new plants, machines, capital equipment, addition to inventories and use of funds on new issues of equalities, bonds or securities.
Advertisement
Article and Schedule Quiz Start Test!

DOWNLOAD CURRENT AFFAIRS PDF FROM APP

Advertisement
Assam Direct Recruitment Test Series