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Which of the following best represents the concept of Net Domestic Product (NOP)?

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Question

Which of the following best represents the concept of Net Domestic Product (NOP)?

Options

  • GDP + Income from abroad

  • GNP - Depreciation 

  • GDP - Income from abroad 

  • GDP - Depreciation

MCQ
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Solution

GDP - Depreciation

Explanation:

Net domestic product (NOP) is a yearly indicator of a country's economic production that takes the depreciation effect into account. Depreciation is subtracted from the gross domestic product to determine the NOP (GDP).

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Economic Current Affair (Entrance Exam)
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