WBCS.LIVE practice question

Which of the following is deducted from Gross National Product (GNP) to calculate Net National Product (NNP)?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Indirect Taxes
  2. Subsidies
  3. Depreciation
  4. Net Factor Income from Abroad

Correct answer and explanation

Correct answer: Depreciation

Explanation: āœ… Correct Answer: C) Depreciation šŸ“š Explanation: Gross National Product (GNP) measures the total market value of all final goods and services produced by the residents of a country in a given year. Over time, the capital assets used in this production process experience wear and tear, which is accounted for as depreciation. By subtracting this depreciation value from the GNP, economists arrive at the Net National Product (NNP).