Net domestic product is calculated as _____________.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. GDP - Depreciation.
Net Domestic Product (NDP) is a measure of a country's total economic output adjusted for depreciation. Depreciation represents the wear and tear or consumption of fixed capital assets like machinery and buildings during the production process. By subtracting this depreciation from the Gross Domestic Product (GDP), NDP provides a more accurate picture of the net value added to the economy in a given period, reflecting sustainable income.