Statement I: Net Investment is a stock concept.
Statement II: Capital is a flow concept.
(a) Statement I is true and Statement II is false
(b) Statement I is false and Statement II is true
(c) Both Statements are true
(d) Both Statements are false
Ans – (d)
Net Investment is a flow Concept and it is measured for a period of time. As per Economics Net Investment is just an addition to the present Stock of capital during a period of time.
For example, net investment in 2023 -24
It is measured for a period of time, not at a point of time.
Capital is a Stock Concept, as it is measured at a point of time.
For example capital as at 31st March, 2023-24.
It is measured at a point of time, not for a period of time.