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Which of the following equation is appropriate for determining the Net Domestic Product (NDP)?

Economics
WAEC 2010

Which of the following equation is appropriate for determining the Net Domestic Product (NDP)?

  • A. NDP = GNP - depreciation
  • B. NDP = GDP + Net Income from abroad
  • C. NDP = GDP - depreciation
  • D. NDP = GDP * Net Income from abroad
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Correct Answer: Option C
Explanation

 Net domestic product (NDP) is an annual measure of the economic output of a nation that is adjusted to account for depreciation and is calculated by subtracting depreciation from the gross domestic product (GDP).

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