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Net National Product (NNP) of a country is
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- GDP minus depreciation allowances
- GDP plus net income from abroad
- GNP minus net income from abroad
- GNP minus depreciation allowances
Correct Option: D
Net National Product (NNP) of a country is GNP minus depreciation allowances. NNP is the actual addition to year's wealth. While calculating GNP, we ignore depreciation of assets but in reality the process of production uses up the fixed assets or there is some wear and tear or fixed assets by process of depreciation. In order to arrive at NNP we deduct depreciation from GNP.