Question

Distinguish between:
Gross National Product and Net National Product

Answer 1

Basis	Gross national product	Net national product
1. Definition	GNP takes into account all the goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.	NNP refers to the value of all the final goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.
2. Depreciation	It includes depreciation.	It excludes depreciation.
3. Treatment as national income	GNP cannot be treated as national income.	NNP is treated as national income only at factor cost.