Question

Net domestic product is the total value of Select one: a. all final goods and services produced within a country's borders in a year. b. only intermediate goods produced within a country's borders in a year. c. all final goods and services produced within a country's borders in a year minus gross private domestic investment. d. only intermediate goods produced within a country's borders in a year plus gross private domestic investment. e. all final goods and services produced within a country's borders in a year minus capital consumption allowance.

Answer 1

Answer:

The correct answer is letter "E": all final goods and services produced within a country's borders in a year minus capital consumption allowance.

Explanation:

Net Domestic Product (NDP) is calculated by subtracting depreciation from the Gross Domestic Product (GDP). In other words, NDP measures a country's domestic production during a period minus Capital Consumption Allowance (CCA). When the NDP increases indicate the economy of a country is safe but if it decreases it implies the economy is failing.