Multiple choice

The difference between GNP and NNP equals

  1. consumer expenditure on durable goods

  2. indirect business taxes

  3. a statistical discrepancy

  4. depreciation

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

GNP (Gross National Product) measures total output produced by citizens regardless of location. NNP (Net National Product) subtracts depreciation (capital consumption) from GNP to reflect actual net output available for consumption. The formula is: NNP = GNP - Depreciation. Options A, B, and C are unrelated to this relationship.

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