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.
Question : Statement 1: Net Domestic Product (NDP) is obtained by deducting depreciation from Gross Domestic Product (GDP).
Statement 2: Depreciation represents the loss in value of capital goods over time.
Question : Statement 1: Gross Domestic Product (GDP) measures the value of all final goods and services produced within a country's borders.
Statement 2: Gross National Product (GNP) measures the value of all final goods and services produced by a country's residents,
Question : Gross Domestic Product (GNP) - Depreciation allowances = ____________.
Question : Which of the following is a measure of national income that takes into account the value of goods and services produced by a country's residents both domestically and abroad?
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