Edexcel A-Level Economics AS 2.3.2 3a Distinction Between Gross Investment and Net Investment Questions

Practise distinguishing gross investment from net investment, applying depreciation identities and interpreting changes in gross-investment data.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
AS

Exam points

  • define gross investment as net investment plus depreciation, including replacement of worn-out capital
  • identify net investment as gross investment minus capital depreciation
  • calculate absolute or percentage changes in gross-investment data without inferring the net capital-stock change

Edexcel A-Level Economics AS 2.3.2 3a Distinction Between Gross Investment and Net Investment Questions question 1

[Maximum number: 4]

The table shows the value of gross investment in Tanzania for 2015 and 2020.

Table for Question Edexcel A-Level Economics AS 2.3.2 3a Distinction Between Gross Investment and Net Investment Questions question 1 — Edexcel A-Level Economics AS

With reference to the table, explain what is meant by 'gross investment'.

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