Question

The difference between gross domestic product and net domestic product equals _____.

• A. transfer payments
• B. depreciation cost
• C. indirect taxes.
• D. subsidies

Answer 1

The correct option is B depreciation cost

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.