If NDP is 840 crore rupees and depreciation is 60 crore rupees, then what is GDP?
Answer and explanation
Correct answer: 900 crore rupees
The relationship is NDP = GDP − Depreciation. To find GDP, rearrange it as GDP = NDP + Depreciation. Substituting the given values gives GDP = 840 + 60 = 900 crore rupees. Therefore, option B is correct. Depreciation is added when moving from a net measure back to the corresponding gross measure.
Frequently asked questions
What is the correct answer to this question?
900 crore rupees
Why is this the correct answer?
The relationship is NDP = GDP − Depreciation. To find GDP, rearrange it as GDP = NDP + Depreciation. Substituting the given values gives GDP = 840 + 60 = 900 crore rupees. Therefore, option B is correct. Depreciation is added when moving from a net measure back to the corresponding gross measure.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
