NDP = _________.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. GDP – Depreciation.
NDP stands for Net Domestic Product. It is calculated by subtracting depreciation (the wear and tear on a country's capital goods) from the Gross Domestic Product (GDP). In formula terms:
NDP = GDP - Depreciation.
NDP measures the net value of all goods and services produced within a country's borders, accounting for the loss of value due to the depreciation of assets. It reflects a more accurate representation of an economy's productive capacity.