1.

Explain the concept of Domestic Product. Distinguish between Gross Domestic Product and Gross National Product. 

Answer»

Domestic product is the sum of value added by all the producers in the domestic territory of a country during a year. It means all value-added activities which are performed within the domestic territory would be included, whether this activity is done by the Indians or foreigners.

Gross Domestic ProductGross National Product
Domestic product is the sum of value added by all the producers in the domestic territory of a country during a year, whether the value added is done by Indians or foreigners.National product is the sum of value added by the Normal residents of a country whether with in the domestic territory or out side the domestic territory
It is an Territorial concept because it define with the reference to domestic territory.It is an Economic concept because it define with the reference to productive efforts of Normal Residents.
It does note include Net Factor Income from Abroad.It includes Net Factor Income from Abroad. 


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