SarkariPYQ

SSC GD 2024 PYQ — Question 29

SSC GD Const (English) - 26 Feb 2024 - Shift 4 • General Awareness • Q29

Back to paper

When calculating Net National Product (NNP), what is deducted from Gross National Product (GNP)?

Show answer & explanation

Correct answer: D

Explanation

The correct answer is option 4 i.e. Depreciation.

  • When calculating Net National Product (NNP), depreciation is deducted from Gross National Product (GNP).
  • Formula: NNP = GNP − Depreciation (Capital Consumption)
  • GNP (Gross National Product) represents the total value of all goods and services produced by a country's residents in a given period, including income from abroad.
  • Depreciation refers to the decrease in the value of capital assets (such as machinery, buildings, etc.) over time due to wear and tear, obsolescence, or aging.
  • NNP (Net National Product) is the total market value of goods and services produced by the residents of a country, after accounting for the depreciation of capital assets.