Distinguish between:
Gross National Product and Net National Product
Basis
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Gross national product
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Net national product
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1. Definition
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GNP takes into account all the goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.
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NNP refers to the value of all final goods and services produced by the normal residents of a country both within the domestic territory as well as outside the country.
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2. Depreciation
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It includes depreciation.
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It excludes depreciation.
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3. Treatment as national income
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GNP cannot be treated as national income.
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NNP is treated as national income only at factor cost.
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