New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which statement correctly describes Net National Product

    (NNP)?
    A NNP = GNP - Depreciation Correct Answer Incorrect Answer
    B NNP - GNP = Depreciation Correct Answer Incorrect Answer
    C NNP = GNP + Depreciation Correct Answer Incorrect Answer
    D NNP - Depreciation = GNP Correct Answer Incorrect Answer

    Solution

    Net National Product (NNP) is calculated by subtracting depreciation expenses from the Gross National Product (GNP). Depreciation represents the cost incurred in repairing or replacing machinery and equipment used in the production process. The formula NNP = GNP - Depreciation reflects that NNP accounts for the wear and tear of capital goods, providing a more accurate measure of a country's economic output by excluding the portion needed to maintain existing capital stock.

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