Multiple choice

Net National Product (NNP) is equal to

  1. GNP - Foreign Aid

  2. GNP - Depreciation

  3. GNP - Total Taxes

  4. GNP - Indirect Taxes

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

Net National Product (NNP) = Gross National Product (GNP) minus depreciation (capital consumption allowance). Depreciation represents the wear and tear on capital assets during production. Foreign aid, taxes, and indirect taxes are not subtracted to get NNP.