Question
Consider the following statements regarding Capital formation:
Select the correct answer using the code given below:
- Gold and valuable metals are part of Fixed Capital Formation
- Intellectual properties are part of Fixed capital formation
- Construction of buildings and other structures are part of Capital Formation
Select the correct answer using the code given below:
Answer: Option A
Answer: (a)
Gross Capital Formation = Gross Fixed Capital Formation (machinery + equipment + building + cultivated biological resources + intellectual property) + Valuable Metals + Change in stock/inventory
Gross fixed capital formation is around 30% and valuable metals and change in the stock is one per cent each.
So Gross Capital Formation or Gross Investment is around 32%. Mostly we use the gross fixed investment for all calculations and growth purposes.
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Answer: (a)
Gross Capital Formation = Gross Fixed Capital Formation (machinery + equipment + building + cultivated biological resources + intellectual property) + Valuable Metals + Change in stock/inventory
Gross fixed capital formation is around 30% and valuable metals and change in the stock is one per cent each.
So Gross Capital Formation or Gross Investment is around 32%. Mostly we use the gross fixed investment for all calculations and growth purposes.
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