Which of the following best represents the concept of Net Domestic Product (NDP)?

Question

Question

This question was previously asked in

SSC MTS 2020 (Held On : 14 Oct 2021 Shift 1) Official Paper 22

Answer 1

The correct answer is GDP - Depreciation.

Key Points

Net domestic product (NDP) is an annual measure of the economic output of a nation that is adjusted as per the depreciation effect.
The NDP is calculated by subtracting depreciation from the gross domestic product (GDP).
An increased NDP indicates growth in economic health, while a decrease would indicate a slowdown of the economy of the country.
Depreciation is the measure of the decreased monetary value of an asset over time due to use, wear and tear, or obsolescence.

Additional Information Gross National Income (GNI)

Gross National Income (GNI) is the total amount of money earned by a nation's people and businesses.
It is used to measure and track a nation's wealth from year to year.
The number is calculated using the nation's gross domestic product (GDP) plus the income it receives from abroad.
India GNI per capita for 2020 was $1,900.

Net National Product (NNP)

Net national product (NNP) is the monetary value of finished goods and services produced by a country's citizens, overseas and domestically, in a given period.
It is the equivalent of the Gross National Product (GNP), the total value of a nation's annual output, minus the depreciation.
NNP is often examined on an annual basis as a way to measure a nation's success.