Net domestic product (NDP)is the total value of new goods available in the economy after worn out capital goods have been replaced.

Question

Quizplus · Accepted Answer

Net domestic product (NDP) is calculated by subtracting depreciation from the gross domestic product (GDP). Depreciation accounts for the wear and tear on capital goods, so NDP takes into account the replacement of those goods and only reflects the value of newly produced goods in the economy.

Net Domestic Product (NDP)is the Total Value of New Goods