(The following national income data are in billions of dollars.) Refer to the above data. Net domestic product equals:
A) $1,039 billion
B) $1,044 billion
C) $1,054 billion
D) $1,076 billion

Question

(The following national income data are in billions of dollars.)  Refer to the above data. Net domestic product equals:
A) $1,039 billion 
B) $1,044 billion 
C) $1,054 billion 
D) $1,076 billion

Quizplus · Accepted Answer

Net domestic product (NDP) is calculated by subtracting depreciation (or consumption of fixed capital) from gross domestic product (GDP). Therefore, NDP = GDP - depreciation = $1,054 billion - $50 billion = $1,004 billion.

(The Following National Income Data Are in Billions of Dollars