Question

Distinguish between 'Gross National Product and Net National Product'.

Answer 1

GNP (Gross National Product) is the aggregate market value of all goods and services produced by all of its citizens and businesses irrespective of their location (local or global) during a particular period.

NNP (Net National Product) is the total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.

Thus, NNP= GNP - Depreciation