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Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existing
Reason: The already existing capital stock suffers wear and tear and needs maintenance and replacement
Select the correct code:
- a)Both A and R are true and R is the correct explanation of A.
- b)Both A and R are true but R is not a correct explanation of A.
- c)A is true but R is false.
- d)A is false but R is true.
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Assertion: All the capital goods produced in a year constitute an add...
- Part of our final output that comprises capital goods constitutes gross investment of an economy. These may be machines, tools and implements; buildings, office spaces, storehouses or infrastructure like roads, bridges, airports or jetties.
- But all the capital goods produced in a year do not constitute an addition to the capital stock already existing. A significant part of current output of capital goods goes in maintaining or replacing part of the existing stock of capital goods. This is because the already existing capital stock suffers wear and tear and needs maintenance and replacement.
- A part of the capital goods produced this year goes for replacement of existing capital goods and is not an addition to the stock of capital goods already existing and its value needs to be subtracted from gross investment for arriving at the measure for net investment.
Most Upvoted Answer
Assertion: All the capital goods produced in a year constitute an add...
Capital goods are man-made goods that are used in the production of other goods and services. The production of capital goods adds to the capital stock already existing, but this statement is not always true. Let us analyze the given assertion and reason in detail:
Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existing.
Reason: The already existing capital stock suffers wear and tear and needs maintenance and replacement.
Explanation:
Capital goods are produced to increase the productive capacity of an economy. The production of capital goods is an investment in the future, which enhances the production of goods and services in the long run. However, this production does not always add to the existing capital stock. There are situations where the capital stock may decrease due to depreciation or obsolescence of existing capital goods.
Depreciation refers to the decrease in the value of capital goods due to wear and tear, while obsolescence refers to the decrease in the usefulness of capital goods due to advancements in technology or changes in consumer preferences. In such situations, the production of new capital goods may not fully compensate for the decrease in the existing capital stock.
Therefore, the given assertion is false as not all the capital goods produced in a year constitute an addition to the capital stock already existing. The reason given is true as the already existing capital goods suffer wear and tear and need maintenance and replacement.
Conclusion:
In conclusion, the production of capital goods is essential for economic growth, but it does not always add to the existing capital stock. The capital stock may decrease due to depreciation or obsolescence of existing capital goods. Therefore, the given assertion is false, and the reason given is true.
Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existing.
Reason: The already existing capital stock suffers wear and tear and needs maintenance and replacement.
Explanation:
Capital goods are produced to increase the productive capacity of an economy. The production of capital goods is an investment in the future, which enhances the production of goods and services in the long run. However, this production does not always add to the existing capital stock. There are situations where the capital stock may decrease due to depreciation or obsolescence of existing capital goods.
Depreciation refers to the decrease in the value of capital goods due to wear and tear, while obsolescence refers to the decrease in the usefulness of capital goods due to advancements in technology or changes in consumer preferences. In such situations, the production of new capital goods may not fully compensate for the decrease in the existing capital stock.
Therefore, the given assertion is false as not all the capital goods produced in a year constitute an addition to the capital stock already existing. The reason given is true as the already existing capital goods suffer wear and tear and need maintenance and replacement.
Conclusion:
In conclusion, the production of capital goods is essential for economic growth, but it does not always add to the existing capital stock. The capital stock may decrease due to depreciation or obsolescence of existing capital goods. Therefore, the given assertion is false, and the reason given is true.
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Assertion: All the capital goods produced in a year constitute an add...
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Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer?
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Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer?.
Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Assertion: All the capital goods produced in a year constitute an addition to the capital stock already existingReason: The already existing capital stock suffers wear and tear and needs maintenance and replacementSelect the correct code:a) Both A and R are true and R is the correct explanation of A.b) Both A and R are true but R is not a correct explanation of A.c) A is true but R is false.d) A is false but R is true.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
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