If GDP is ₹1800 crore and depreciation is ₹250 crore, what is NDP?
Answer and explanation
Correct answer: ₹1550 crore
Net Domestic Product is obtained by deducting depreciation, or consumption of fixed capital, from Gross Domestic Product. Thus, NDP = GDP − Depreciation = ₹1800 crore − ₹250 crore = ₹1550 crore. The amount ₹2050 crore would incorrectly add depreciation instead of deducting it.
Frequently asked questions
What is the correct answer to this question?
₹1550 crore
Why is this the correct answer?
Net Domestic Product is obtained by deducting depreciation, or consumption of fixed capital, from Gross Domestic Product. Thus, NDP = GDP − Depreciation = ₹1800 crore − ₹250 crore = ₹1550 crore. The amount ₹2050 crore would incorrectly add depreciation instead of deducting it.
Which subject and chapter does this question cover?
This is a Class 12 Economics question. Chapter: National Income and Related Aggregates. Topic: Aggregates related to national income - GDP.
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