What is Net National Product?

Correct option is D

The correct answer is (d) The difference between Gross National Product and depreciation is Net National Product.
• Net National Product (NNP) is calculated by subtracting depreciation (the loss of value of capital goods over time due to wear and tear) from Gross National Product (GNP).
• GNP measures the total value of all final goods and services produced by the residents of a country in a given period, including income earned from abroad.
• Depreciation accounts for the reduction in value of the country's capital goods, so subtracting it from GNP provides a measure of the net output of the economy.
• The formula for NNP is: NNP = GNP - Depreciation.
• This calculation gives a more accurate reflection of the economic performance and the sustainable income level of a country.