Which of the Following Is Subtracted from Net National Product

question 65

Multiple Choice

Which of the following is subtracted from net national product to arrive at national income?

• A)​net income of foreigners
• B)​depreciation
• C)​indirect business taxes
• D)​transfer payments

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Definitions:

Purchasing-Power Parity

A theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Imperfect Substitutes

Products or services that can replace each other to some extent but are not perfect substitutes due to differences in features, preferences, or qualities.

Transported

The act or process of moving goods or people from one place to another via various modes of transportation like vehicles, trains, ships, or planes.

Consumer Preferences

The subjective tastes and likes that govern the choices made by consumers regarding the purchase of various goods and services.