Which of the following is subtracted from gross national product to arrive at the net national product?
A)net income of foreigners
B)depreciation
C)indirect business taxes
D)transfer payments

Question

Which of the following is subtracted from gross national product to arrive at the net national product?
A)​net income of foreigners
B)​depreciation
C)​indirect business taxes
D)​transfer payments

Quizplus · Accepted Answer

Depreciation is subtracted from gross national product to arrive at the net national product. Depreciation refers to the decrease in the value of physical assets over time due to wear and tear or obsolescence. Subtracting depreciation from gross national product gives the net national product, which is a better measure of a country's economic output as it takes into account the wear and tear of capital goods used in production. The other options - net income of foreigners, indirect business taxes, and transfer payments - are not subtracted from gross national product to arrive at the net national product.

Which of the Following Is Subtracted from Gross National Product