BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gross National Product / Depreciation
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Gross Domestic Product-Depreciation
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Gross Domestic Product + Depreciation
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Government Expenditure + Depreciation
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Detailed explanation-1: -As the NDP takes into account the depreciation of capital assets, it is considered to be superior to the GDP as a measure of well-being of a nation. This concept is about NDP or net domestic product that serves as an important factor for determining the economic health of a country.
Detailed explanation-2: -Net domestic product at market prices, abbreviated as NDP, is gross domestic product (GDP) minus the consumption of fixed capital (CFC).
Detailed explanation-3: -Answer: NDP at Factor Cost = NDP as Market Price-Indirect Cases+Subsidies.
Detailed explanation-4: -The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country’s capital goods. Net domestic product accounts for capital that has been consumed over the year in the form of housing, vehicle, or machinery deterioration.
Detailed explanation-5: -Gross domestic product (GDP) = Employee compensation + Taxes less subsidies on businesses + Gross operating surplus on businesses. Net operating surplus on businesses = Gross operating surplus on businesses-Depreciation.