The correct answer is: C. Net national product = total national product – Depreciation.
Net national product (NNP) is the total market value of all final goods and services produced by a country’s economy in a given year, minus depreciation. It is calculated by taking the gross national product (GNP) and subtracting depreciation. Depreciation is the decrease in the value of capital goods over time due to wear and tear.
Option A is incorrect because it includes indirect taxes. Indirect taxes are taxes that are levied on goods and services, and are not directly paid by the person who ultimately bears the burden of the tax. For example, a sales tax is an indirect tax, because the seller of the goods pays the tax to the government, but the buyer of the goods ultimately bears the burden of the tax.
Option B is incorrect because it subtracts indirect taxes twice. Indirect taxes are already included in the GNP, so they should not be subtracted again when calculating NNP.
Option D is incorrect because it does not include depreciation. Depreciation is a necessary adjustment to the GNP to account for the fact that capital goods wear down over time.
Therefore, the correct answer is C. Net national product = total national product – Depreciation.