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    Question

    The Gross Domestic Product of a country is Rs.600

    billion. The country earns Rs.40 billion as Net Factor Income from Abroad, while capital consumption allowance amounts to Rs.50 billion. What will be the value of the country’s Net National Product (NNP)?
    A Rs.510 billion Correct Answer Incorrect Answer
    B Rs.550 billion Correct Answer Incorrect Answer
    C Rs.590 billion Correct Answer Incorrect Answer
    D Rs.610 billion Correct Answer Incorrect Answer
    E Rs.640 billion Correct Answer Incorrect Answer

    Solution

    Note - Capital consumption allowance means depreciation NNP=GDP + Net Factor Income from Abroad – Depreciation             = Rs. 600 billion + Rs.40 billion – Rs.50 billion = Rs.590 billion  

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