Net national product (NNP) is equal to:

Question

Quizplus · Accepted Answer

Net national product (NNP) represents the total value of goods and services produced by a country's citizens and businesses, regardless of their location. To calculate NNP, we need to deduct the depreciation of fixed assets from gross national product (GNP). Hence, NNP is equal to GNP minus depreciation (option C). Option A is incorrect because it deducts net investment instead of depreciation. Option B is incorrect because it adds depreciation instead of deducting it. Option D is incorrect because it considers gross domestic product (GDP), which represents the value of goods and services produced within a country's borders, while NNP considers the value produced by a country's citizens and businesses, whether at home or abroad.

Net National Product (NNP) Is Equal To