Question : Statement 1: Net National Product (NNP) represents the value of final goods and services produced by a country's residents during a specific period.
Statement 2: NNP is obtained by deducting depreciation from Gross National Product (GNP).
Option 1: Statement 1 is true, and Statement 2 is false.
Option 2: Statement 1 is false, and Statement 2 is true.
Option 3: Both Statement 1 and Statement 2 are true.
Option 4: Both Statement 1 and Statement 2 are false.
Correct Answer: Both Statement 1 and Statement 2 are true.
Solution : The correct answer is (c) Both Statement 1 and Statement 2 are true.
Statement 1 is true. Net National Product (NNP) represents the value of final goods and services produced by a country's residents during a specific period. It takes into account depreciation, which is the wear and tear on capital goods.
Statement 2 is also true. NNP is obtained by deducting depreciation from Gross National Product (GNP). Depreciation represents the reduction in the value of capital goods over time, and it is subtracted from GNP to arrive at NNP, which reflects the net output after accounting for the depreciation.
Therefore, Both Statement 1 and Statement 2 are true.
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