Economic Awareness - Sectors of Indian Economy
Net National Product (NNP) is calculated by which of the following formulas?
Net National Product (NNP) is calculated by which of the following formulas?
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand NNP
NNP represents the net value of production after accounting for depreciation (consumption of fixed capital).Step 2: Apply the formula
NNP is derived by subtracting depreciation from GNP, not GDP. GDP minus depreciation gives Net Domestic Product (NDP), which is different.Final Answer:
GNP minus depreciation → Option BQuick Check:
NNP = GNP - depreciation ✅
Quick Trick: NNP = GNP minus depreciation (consumption of fixed capital).
Common Mistakes:
- Confusing NNP with NDP or subtracting depreciation from GDP instead of GNP.
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