Net domestic product is the total value of
A) all final goods and services produced within a country's borders in a year.
B) only intermediate goods produced within a country's borders in a year.
C) all final goods and services produced within a country's borders in a year minus gross private domestic investment.
D) only intermediate goods produced within a country's borders in a year plus gross private domestic investment.
E) all final goods and services produced within a country's borders in a year minus capital consumption allowance.

Question

Quizplus · Accepted Answer

Net Domestic Product (NDP) is calculated by subtracting the capital consumption allowance (depreciation) from the Gross Domestic Product (GDP). GDP represents the total value of all final goods and services produced within a country's borders in a given year, and by subtracting the depreciation on capital goods, we get the NDP, which reflects the net value after accounting for the wear and tear on capital assets.

Net Domestic Product Is the Total Value of