Question:
When depreciation is deducted from GNP, the net value is?
ANet national product
BNet domestic product
CGross national product
DDisposable income
Answer:
A. Net national product
Explanation:
NNP is the net value of GNP after the depreciation of plant and machinery is deducted. NNP at market price is calculated by deducting indirect taxes and subsidies from NNP at factor cost. NNP at factor cost is the value of the NNP when the value of goods and services are taken at the production point.