National Domestic Product (NDP) represents the total value of goods and services produced within the domestic territory of a country after accounting for depreciation. National Net Product (NNP) is derived from Net National Income (NNI) and represents the total value of goods and services produced by the residents of a country, both within and outside the domestic territory, after accounting for depreciation. The relationship is given by: NNP = NDP + Net Factor Income from Abroad (NFIA). NFIA is the difference between factor income received by residents from abroad and factor income paid to non-residents in the domestic country.
If NDP of India is greater than NNP, it means that
Asked in KPSC KAS Prelims 2014 · Topic: National Income & Gross Domestic Product (Net Domestic Product (NDP) and Net National Product (NNP))
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Answer: D. The net earnings from abroad are negative.
More Economic Development questions
- Which of the following statement/s is/are incorrect about Net National Product (NNP)? (a) It shows net production of goods and services produced in a given financial year adjusted for net factor income from abroad. (b) It includes exports, imports but not factor income from abroad. (c) It is called 'net' because it deducts capital depreciation from total National Income.
- The Net National Product at Market Price (N.N.P. MP) is –
- Which of the following statement is correct ?
- Which one of the following relations is correct for net domestic product?
- GDP(at market price) – NIT = ?
- Depreciation is also called
- difference between the national income at factor cost and national income at market prices arises from 1) indirect taxes and subsidies 2) direct taxes and subsidies 3) indirect taxes and direct taxes 4) only indirect taxes
- Which of the following is equal to the National Income ?