Which one of the following relations is correct for net domestic product?
Net Domestic Product = Gross Domestic Product + Depreciation
Net Domestic Product = Gross Domestic Product – Depreciation
Net Domestic Product = Gross Domestic Product/Depreciation
Net Domestic Product = Gross Domestic Product × Depreciation
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC SO-Steno – 2018
– Depreciation is the consumption of fixed capital, representing the decrease in the value of physical capital goods (like machinery, buildings) due to wear and tear or obsolescence over time.
– Net Domestic Product (NDP) measures the value of goods and services produced within a country’s borders minus the cost of capital consumed during the production process. It is a measure of net output.