Asked by Jamie Walker on Jun 13, 2024
Verified
Which of the following is a difference between net domestic product (NDP) and gross domestic product (GDP) ?
A) GDP includes the cost of polluting the environment,while NDP does not.
B) GDP excludes net taxes,while NDP includes it.
C) GDP excludes that part of the capital stock used up in the production process,while NDP includes it.
D) GDP includes all government spending,while NDP excludes government spending.
E) GDP includes that part of the capital stock used up in the production process,while NDP does not.
Net Domestic Product
The total value of all goods and services produced within a country in a year, minus depreciation.
Gross Domestic Product
The total market value of all final goods and services produced within a country in a specific time period, a primary indicator of economic health.
Capital Stock
The total representation of a company's physical and financial assets that can be used to generate income, including machinery, buildings, and equipment.
- Acquire knowledge on the concept and arithmetic of Gross Domestic Product (GDP) and its relevance in gauging economic dynamics.
- Comprehend the principles of depreciation and the framework of national income accounting, particularly the Net Domestic Product (NDP).
Verified Answer
Learning Objectives
- Acquire knowledge on the concept and arithmetic of Gross Domestic Product (GDP) and its relevance in gauging economic dynamics.
- Comprehend the principles of depreciation and the framework of national income accounting, particularly the Net Domestic Product (NDP).
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