Economic Calculation: GNP vs NNP
Gross National Product (GNP) represents the total market value of all final goods and services produced by a country's citizens, both domestically and abroad, within a given period. It includes the value of capital goods used up during production, known as depreciation.
Depreciation Deduction Explained
Depreciation is the decrease in the value of assets over time due to wear and tear or obsolescence.
To find the Net National Product (NNP), we subtract the value of depreciation from the GNP.
The formula is:
\(\text{Net National Product (NNP)} = \text{Gross National Product (GNP)} - \text{Depreciation}\)
Therefore, the deduction of depreciation from Gross National Product yields the Net National Product.
Similar Questions
- The value of the gross investment in order to accommodate regular wear and tear of capital is called:
- In India, National Income is computed by:
- As per Ministry of Statistics and Programme Implementation, which state of India has the highest per capita income for 2018-19?
Which of the following economic models formed the basis of the Second Five-Year Plan?
- As per estimates by NSO, India's GDP is estimated to grow by ______ in FY21.
- Which of the following is the correct full form of GDFCF?
- Equilibrium national income occurs where aggregate supply ________
- Gross Domestic Production is the total value of:
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Important Questions from National Income Accounting
- The ratio of nominal to real Gross Domestic Product is called :
Consider the following statements:
1. Statistics day is celebrated every year on 29th July.
2. National Statistical Commission was set up in 2004.
3. The base year of Consumer Price Index (Rural) is same as that of Consumer Price Index (Urban) i.e. 2012 = 100.
Which of the above statements is/are false?- The value of the gross investment in order to accommodate regular wear and tear of capital is called:
- In India, National Income is computed by:
- As per Ministry of Statistics and Programme Implementation, which state of India has the highest per capita income for 2018-19?
