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Q: In the estimation of national income, which of the following items will be subtracted from NNP at market price?
  • A. Net indirect taxes
  • B. Depreciation
  • C. Net product taxes and net production taxes
  • D. Depreciation and net product taxes
Correct Answer: Option A - Net National Product (NNP) is the market value of all final goods and services after providing for depreciation. NNP at factor cost or National Income is the sum of wages, rent, interest and profits paid to factors for their contribution to the production of good and services in a year. It may be noted that,
A. Net National Product (NNP) is the market value of all final goods and services after providing for depreciation. NNP at factor cost or National Income is the sum of wages, rent, interest and profits paid to factors for their contribution to the production of good and services in a year. It may be noted that,

Explanations:

Net National Product (NNP) is the market value of all final goods and services after providing for depreciation. NNP at factor cost or National Income is the sum of wages, rent, interest and profits paid to factors for their contribution to the production of good and services in a year. It may be noted that,