What is Net National Product?

Question

Question

This question was previously asked in

SSC CGL 2023 Tier-I Official Paper (Held On: 21 Jul 2023 Shift 2)

The product of gross national product and depreciation is net national product.
The sum of gross national product and income of foreigners is net national product.
Net national product is equal to gross national product.
The difference between gross national product and depreciation is net national product.

Answer 1

The correct answer is The difference between gross national product and depreciation is net national product.

Key Points

Net National Product is a measure of the total value of goods and services produced by a country's residents, minus the value of capital goods used up in the production process.

Additional Information

Gross National Product (GNP) is the total value of goods and services produced by a country's residents, regardless of their location, in a specific period of time (usually a year). It includes the value of goods and services produced by a country's citizens and businesses, both domestically and abroad.
Depreciation refers to the decrease in the value of capital goods (such as machinery, buildings, and vehicles) over time due to wear and tear, obsolescence, and other factors. It is subtracted from GNP to arrive at Shuddh Rashtriya Utpad, which provides a more accurate measure of a country's economic output.
Shuddh Rashtriya Utpad is also known as Net National Product (NNP) and represents the income earned by a country's residents from the production of goods and services. It is a key measure of a country's economic performance and is used to calculate other indicators such as per capita income and the Human Development Index.