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Q: Which of the following is true?
  • A. Gross Domestic Product - Depreciation = Net Domestic Product
  • B. Gross Domestic Product - Depreciation = Gross National Product
  • C. Gross Domestic Product + Depreciation = Net Domestic Product
  • D. Gross Domestic Product + Depreciation = Gross National Product
Correct Answer: Option A - Gross Domestic Product (GDP) is the standard measure of the value of final goods and services produced by a country during a period. The net domestic product is obtained by subtracting depreciation on a country's capital goods from the gross domestic product (GDP) of the country. Hence, Gross Domestic Product-Depreciation=Net Domestic Product.
A. Gross Domestic Product (GDP) is the standard measure of the value of final goods and services produced by a country during a period. The net domestic product is obtained by subtracting depreciation on a country's capital goods from the gross domestic product (GDP) of the country. Hence, Gross Domestic Product-Depreciation=Net Domestic Product.

Explanations:

Gross Domestic Product (GDP) is the standard measure of the value of final goods and services produced by a country during a period. The net domestic product is obtained by subtracting depreciation on a country's capital goods from the gross domestic product (GDP) of the country. Hence, Gross Domestic Product-Depreciation=Net Domestic Product.