Question : Which of the following is not a measure of national income?

 

Option 1: Gross Domestic Product (GDP)

Option 2: Gross National Product (GNP)

Option 3: Net National Product (NNP)

Option 4: Net Domestic Product (NDP)

Correct Answer: Net Domestic Product (NDP)

Solution : The correct answer is d) Net Domestic Product (NDP).

Gross Domestic Product (GDP), Gross National Product (GNP), and Net National Product (NNP) are all measures of national income. These measures represent the total value of goods and services produced within a country's borders during a specific time period.

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country's borders, regardless of whether the factors of production are domestically or foreign-owned.

Gross National Product (GNP) measures the total value of all final goods and services produced by a country's residents, regardless of their location, within a specific time period. It includes both domestic and foreign production.

Net National Product (NNP) is calculated by subtracting depreciation (also known as the capital consumption allowance) from the Gross National Product (GNP). NNP represents the net output of goods and services after accounting for the wear and tear or obsolescence of capital goods.

Net Domestic Product (NDP) is a measure of national income that takes into account the depreciation of capital within a country. It is calculated by subtracting depreciation from Gross Domestic Product (GDP). NDP represents the net output of goods and services after accounting for the depreciation of capital goods.