SSC CGL 2023 PYQ — Question 38

The correct answer is option 4 i.e. The difference between gross national product and depreciation is net national product.

Net National Product (NNP) refers to the total market value of all final goods and services produced by a country's residents during a specific period (usually a year), after subtracting depreciation (also called capital consumption). It represents the overall economic health of a country and reflects the net value of production, considering the wear and tear on the country's capital goods.

The formula for NNP is:

NNP = GNP - Depreciation

Where:

• GNP (Gross National Product) is the total market value of all final goods and services produced by the residents of a country.

• Depreciation is the loss of value of capital goods due to wear and tear or obsolescence.

NNP helps in understanding the sustainability of a country's economic growth, as it accounts for the fact that some capital goods are being used up in the production process.