The Net National Product can be calculated by subtracting Depreciation from _________.

Question

Question

This question was previously asked in

RRB NTPC CBT 2 Level -4 Official paper (Held On: 10 May 2022 Shift 1)

Answer 1

The correct answer is Gross National Product.

Key Points

Net National Product (NNP):
- NNP is obtained by subtracting depreciation value (i.e. capital stock consumption) from GNP.
- Net National Product (NNP) = Gross National Product − Depreciation.

Additional Information

Gross Domestic Product (GDP):
- It is the total money value of all final goods and services produced within the geographical boundaries of the country during a given period of time.
- GDP = C + G + I
  - C = Consumption expenditure
  - G = Government expenditure
  - I = Investment expenditure
Gross National Product (GNP):
- It refers to the money value of the total output of production of final goods and services produced by the nationals of a country during a given period of time, generally a year.
National Income (NI):
- When NNP is calculated at factor cost (FC) it is called National Income.
- The measure is calculated by deducting indirect taxes and adding subsidies in NNP at Market Price (MP).
- In India, the Wholesale Price Index (WPI) is the weighted average price of 676 items with the base year 2011-12.