Which of the following best defines Net National Income?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. GNP – Depreciation.
- Net national income is defined as gross domestic product plus net receipts of wages, salaries, and property income from abroad, minus the depreciation of fixed capital assets (dwellings, buildings, machinery, transport equipment, and physical infrastructure) through wear and tear and obsolescence.
- Net national income represents the total income of a country's residents, and it is uniquely precise in that it factors in depreciation.