Question 20
MediumOriginal questionAssertion (A): If there were no depreciation in a year, GDP would equal NDP.
Reason (R): GDP and NDP differ only by depreciation.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
NDP = GDP − depreciation, so zero depreciation makes them equal. R explains A.
- Concept
- Gross and net
- Typical timeTypical
- 70 s
- Your timeYours
- —
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