Question : Which of the following is a measure of national income that takes into account the depreciation of capital and natural resources?
Option 1: Gross Domestic Product (GDP)
Option 2: Gross National Product (GNP)
Option 3: Net Domestic Product (NDP)
Option 4: Net National Product (NNP)
Correct Answer: Net Domestic Product (NDP)
Solution : The correct answer is (c) Net Domestic Product (NDP)
Net Domestic Product (NDP) is a measure of national income that takes into account the depreciation of capital and natural resources. It is calculated by subtracting the depreciation (or the wear and tear) of fixed capital and the depletion of natural resources from the Gross Domestic Product (GDP). NDP provides a measure of the net output or income generated within a country after accounting for the consumption of fixed capital and natural resources.
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