Net domestic product measures
A) C + I + G + (X - M).
B) GDP minus depreciation.
C) GDP plus income payments from the rest of the world minus income payments to the rest of the world.
D) national income plus income payments from the rest of the world minus income payments to the rest of the world.

Question

Quizplus · Accepted Answer

Net domestic product (NDP) is calculated by subtracting depreciation (the loss in value of capital goods over time) from gross domestic product (GDP). It represents the value of the total output produced by a country's domestic residents, accounting for capital goods that have been consumed or worn out in the production process. Thus, choice B is the correct definition of net domestic product.

Net Domestic Product Measures