The difference between net domestic product and national income is that
A)net domestic product includes depreciation.
B)national income includes government and business transfer payments.
C)net domestic product includes indirect business taxes.
D)net domestic product doesn't include social security taxes or corporate retained earnings.

Question

Quizplus · Accepted Answer

Net Domestic Product (NDP) includes indirect business taxes, which are part of the market prices of goods and services, whereas National Income accounts for income earned by factors of production and does not include these taxes.

The Difference Between Net Domestic Product and National Income Is