1.

Distinguish between:Gross National Product and Net National Product

Answer»
BasisGross national productNet national product
1. DefinitionGNP takes into account all the goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.NNP refers to the value of all the final goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.
2. DepreciationIt includes depreciation.It excludes depreciation.
3. Treatment as national incomeGNP cannot be treated as national income.NNP is treated as national income only at factor cost.


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