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How is Net National Product (NNP) calculated?

AGNP minus consumption expenditure

BGNP minus depreciation

CGDP minus taxes

DGDP minus imports

Answer:

B. GNP minus depreciation

Read Explanation:

  • Net National Product (NNP) is a key economic indicator used to measure a country's real income or the real productive capacity of an economy.

  • NNP is calculated by subtracting the depreciation of machinery and equipment in the production process from the total monetary value of all final goods and services produced by a country's citizens over a given period of time (usually a year).

  • NNP helps to understand how efficiently a country's productive capacity is being used and how much income can be generated while maintaining existing capital assets.

Basic formula for calculating NNP

  • NNP = GNP − Depreciation

  • GNP (Gross National Product) - This is the total monetary value of all final goods and services produced by a country's citizens (whether they live inside or outside the country) in a year.

  • Depreciation - This refers to the wear and tear and loss of value over time of machinery, equipment, buildings, and other capital assets used in the production process.


Related Questions:

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ഒരാളുടെ ആകെ വാർഷിക വരുമാനം 10,00,000 രൂപയും പ്രത്യക്ഷ നികുതിയായി അടയ്യേണ്ടത് 1,25,000 രൂപയുമാണെങ്കിൽ അയാളുടെ ഉപയോഗിക്കത്തക്ക വരുമാനം (Disposable Income) ?
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ii.Quantity and Quality of factors of produced

iii.Economic and Political stability

iv. All of the above