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      Question

      The difference between Gross Domestic Product (GDP) and

      Net Domestic Product (NDP) is ___________ .
      A Net indirect tax Correct Answer Incorrect Answer
      B Net factor income Correct Answer Incorrect Answer
      C Depreciation Correct Answer Incorrect Answer
      D Loses to the firms in current year Correct Answer Incorrect Answer
      E Net income from abroad Correct Answer Incorrect Answer

      Solution

      GDP is the monetary value of all final goods and services produced in the country. The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country's capital goods.

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