Question : Net Domestic Product (NDP) is calculated by subtracting ______ from ______.
Option 1: depreciation, GNP
Option 2: GNP, depreciation
Option 3: depreciation, GDP
Option 4: GDP, depreciation
Correct Answer: depreciation, GDP
Solution : The correct answer is (c) depreciation, GDP.
Net Domestic Product (NDP) is a measure that calculates the value of all final goods and services produced within a country's borders during a specific period, minus the depreciation of capital goods. It is derived from Gross Domestic Product (GDP) by subtracting depreciation.
Depreciation refers to the wear and tear, as well as the obsolescence, of capital goods used in the production process. Over time, capital goods lose value due to factors such as physical deterioration, technological advancements, or changes in market demand. To account for this loss in value, depreciation is deducted from the GDP to arrive at the NDP.
Gross Domestic Product (GDP) represents the total value of all final goods and services produced within a country's borders, including both consumption and investment. It does not take into account the depreciation of capital goods.
By subtracting depreciation from GDP, NDP provides a measure of the net value of goods and services produced, taking into account the wear and tear of capital goods. This adjustment allows for a more accurate assessment of the overall economic output of a country.
Question : Net National Product (NNP) is calculated by subtracting ______ from ______.
Option 1: depreciation, GDP
Option 2: GDP, depreciation
Option 3: depreciation, GNP
Option 4: GNP, depreciation
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
Question : Gross Domestic Product (GNP) - Depreciation allowances = ____________.
Option 1: National Income
Option 2: Net Domestic Product (NDP)
Option 3: Net National Product (NNP)
Option 4: Gross National Product (GNP)
Question : Net National Product of a country is:
Option 1: Gross Domestic Product (GDP) minus depreciation allowances
Option 2: Gross Domestic Product (GDP) plus net income from abroad
Option 3: Gross National Product (GNP) minus net income from abroad
Option 4: Gross National Product (GNP) minus depreciation allowances
Question : Which of the following is a measure of national income that takes into account the depreciation of capital?
Option 1: Gross National Product (GNP)
Option 2: Net National Product (NNP)
Option 3: Gross Domestic Product (GDP)
Option 4: Net Domestic Product (NDP)
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