What Is Subtracted from GDP to Calculate Net Domestic Product

question 47

Multiple Choice

What is subtracted from GDP to calculate net domestic product (NDP) ?

• A)indirect sales taxes
• B)transfer payments
• C)depreciation
• D)good and services produced overseas

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Definitions:

Vendor Quality

Vendor quality encompasses the ability of a supplier to deliver goods or services that meet the buyer's requirements, including the standards for materials, processes, and final product.

Prevention Cost

Costs incurred to prevent defects in products or services, including training, quality control, and equipment maintenance.

Internal Failure Cost

Costs associated with defects found before a product or service is delivered to the customer, such as scrap and rework expenses.

Value-Added Activity

An activity that is needed to meet customer requirements.