Multiple choice

NNP is equal to

  1. GDP + Depreciation

  2. GDP + Net Indirect Taxes

  3. GNP (-) Depreciation

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

NNP (Net National Product) is calculated as GNP (Gross National Product) minus depreciation. GNP is the total value of all final goods and services produced by a country's residents in a year, and depreciation represents the wear and tear or capital consumption during production. NNP gives us the net value after accounting for this capital consumption.

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