Net domestic product is calculated as _________.

The correct answer is GDP - Depreciation. Key Points

• Net domestic product (NDP) is the total value of goods and services produced within a country's borders, minus the depreciation of capital goods.
• Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.
• GDP - Depreciation is the correct answer because it subtracts the amount of capital goods that have been consumed or used up in the production process from the gross domestic product (GDP).

Additional Information

• GNP - Depreciation is incorrect because it subtracts the amount of capital goods used up in the production process from the gross national product (GNP), which measures the total value of goods and services produced by a country's residents, regardless of their location.
• Gross domestic product (GDP) is the total value of goods and services produced within a country's borders, regardless of the nationality of the producers.
• Gross national product (GNP) is the total value of goods and services produced by a country's residents, regardless of their location.
• Net income earned from abroad is the difference between the income earned by a country's residents from abroad (such as from foreign investments or employment) and the income earned by foreigners within the country.
• Depreciation is an important factor to consider in calculating NDP because it reflects the decrease in the value of capital goods over time and the need for reinvestment in new capital goods to maintain or increase production levels.