Question : Net domestic product is calculated as_______.
Option 1: Gross Domestic Product (GDP) - Depreciation
Option 2: Gross National Product (GNP) - Depreciation
Option 3: Gross Domestic Product (GDP) - Net income earned from abroad
Option 4: Gross National Product (GNP) - Net income earned from abroad
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Correct Answer: Gross Domestic Product (GDP) - Depreciation
Solution : The correct option is Gross Domestic Product (GDP) - Depreciation.
The correct formula for Net Domestic Product (NDP) is Gross Domestic Product (GDP) minus depreciation.
NDP = GDP - Depreciation
where GDP represents the total value of all goods and services produced within the borders of a country within a specific time. Depreciation is a measure of the amount by which the value of a capital asset diminishes during its use in the production of goods and services.
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Question : Gross Domestic Product less Depreciation is________.
Option 1: Gross Domestic Investment
Option 2: Net National Product
Option 3: Gross National Product
Option 4: Net Domestic Product
Question : The income of Indians working abroad is a part of the:
Option 1: domestic income of India
Option 2: income earned from abroad
Option 3: net domestic product of India
Option 4: gross domestic product of India
Question : Which of these expressions is correct?
Option 1: If the factor income from abroad is greater than the factor income paid abroad, then the Gross National Product (GNP) would be greater than the Gross Domestic Product (GDP).
Option 2: If the factor income from abroad is greater than the factor income paid abroad, then the GNP would be lower than the GDP.
Option 3: If the factor income earned from abroad is less than the factor income paid abroad, then the GNP would be greater than the GDP.
Option 4: If the net factor income from abroad is negative, then the GNP would be greater than the GDP.
Question : Which of the following is a correct expression?
Option 1: Depreciation = Net investment - Gross investment
Option 2: Gross investment = Net investment - Depreciation
Option 3: Net investment = Gross investment - Depreciation
Option 4: Net investment = Gross investment + Depreciation
Question : GNP at MP less ___________ gives us GDP at MP.
Option 1: depreciation
Option 2: indirect taxes
Option 3: Net Factor Income from Abroad
Option 4: subsidies
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