National Income — Economics STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsNational Income2 Marks
Question
NNP is less than GNP. - Explain.
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Answer
In any country, during the year, the total monetary value of all commodities and services produced in the country is called Gross National Product $(GNP)$.
If the depreciation of the factors of capital used in the process of production is deducted, we get Net National Product $(NNP)$. When the factors of production are employed in the process of production, there is depreciation of capital factors has to be deducted to find out the real national income.
Therefore, $NNP$ is less than $GNP.$
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