The different uses of the concept of NNP are as given below: (i) This is the ‘National Income’ (NI) of an economy. Though, the GDP, NDP and GNP, all are ‘national income’ they are not written with capitalised ‘N’ and ‘I’. (ii) This is the purest form of the income of a nation. (iii) When we divide NNP by the total population of Difference Between Gdp, Gnp and Nnp. GNP is calculated by taking GDP + net property income from abroad (NFI). NNP is calculated by taking GNP – DP. For example, if a Chinese company operates and earn profits in Australia, the income is included in Australia’s GDP but not China’s GDP. This is because the production took place in Australia. Net income (Income earned by residents in foreign countries minus income earned by foreigners in the country) The mathematical formula for calculating GNP is expressed as follows: Y = C + I + G + X + Z. Or. GNP = Consumption expenditure + Investment + Government expenditure + Net exports + Net income. GNP considers the manufacturing of goods Gross domestic product (GDP) is the broadest quantitative measure of a nation's total economic activity. Net domestic product (NDP) adjusts this figure by subtracting depreciation on the country's capital assets (housing, machinery and vehicles, for example). The depreciation is officially referred to as the 'capital consumption allowance.'. Solution:-. NDP at MP = Private final consumption expenditure + Government final consumption expenditure + Net domestic fixed capital formation + (closing stock – Opening stock) + Net Exports (Exports – Imports) NDP at MP = 600 + 100 + 80 + (10 – 20) + (50 – 60) NDP at MP = 760. NNP at MP = NDP at MP – Net factor income to abraod. Explanation:The given options are related to national income accounting, which is used to measure the economic performance of a country. The correct relation among the national income accounting variables is:GDPMP = GNPMP - NFIwhere GDPMP is the gross domestic product at market prices, GNPMP is the gross national product at market prices, and NFI is the net factor income from abroad.Let's NNPFC = NNPMP – Indirect Taxes + Subsidies. Personal Income= National Income (NNPFC) – (Undistributed Corporate Profits+ Corporate Taxes + Social Security Contribution) + (Transfer Payments). National income of a country can be defined as the total market value of goods and services produced in the economy in a year. The GDP price deflator is an economic measure of inflation and is derived by dividing nominal GDP by real GDP, and then multiplying by 100. GDP DEFLATOR: FORMULA OF GDP DEFLATOR: GDP DEFLATOR= NOMINAL GDP/ REAL GDP X100. GDP, GNP, NNP, NDP, REAL GDP, NOMINAL GDP, GDP DEFLATOR - Download as a PDF or view online for free. (i) NDP at FC (ii) Subsidies (iii) Factor income from abroad (iv) Consumption of Fixed Capital (v) Factor income to abroad (vi) GNP at MP 55,915 1,540 635 1,625 865 58,350 View Solution GNP/GDP (Macroeconomics) In 1929 following the stock market bottoming out, Simon Kuznets led an investigative study resulting in the first national data collection of Gross National Product (GNP). Able to assess the overall production to consumption ratio of the U.S., Franklin Roosevelt entered World War II without jeopardizing the basic needs Domestic Income (NDP FC). Factor Income (NNP FC). Domestic income is the sum total of factor incomes generated within the domestic territory of a country no matter who generates this income either residents or non-residents. 👉🏼 SignUp Here: https://unacademy.onelink.me/081J/24e04e24🏆 Enroll Now: https://unacademy.onelink.me/081J/d4e8c539Unacademy Combat on every Sunday at 11:0 2. producers - GDP MP considers all the producers within the domestic territory of a country.NNP FC considers only the normal residents of a counrty. 3.NIT - GDP MP is at market price i.e., it includes NIT.NNP FC is at factors cost i.e., it does not include NIT. 4.Depreciation - GDP @ MP is inclusive of dep. NNP @ FC does not include dep. The gross national product portion of the NNP formula includes all the final goods and services manufactured and produced within a nation with a period. The depreciation component of the formula is a representation of the deprecation of the assets held by a country . NDP: Net domestic product is defined as "gross domestic product (GDP) minus depreciation of capital", similar to NNP. GDP per capita : Gross domestic product per capita is the mean value of the output produced per person, which is also the mean income. od5DxUM.

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