Answer :
To find the Net Domestic Product (NDP), we need to understand the relationship between Gross Domestic Product (GDP) and Depreciation. The formula to calculate NDP is:
[tex]\text{NDP} = \text{GDP} - \text{Depreciation}[/tex]
In this problem, we are given:
- GDP = ₹20,000
- Depreciation = ₹3,000
Using the formula provided:
[tex]\text{NDP} = ₹20,000 - ₹3,000 = ₹17,000[/tex]
So, the Net Domestic Product (NDP) is ₹17,000.
Therefore, the correct option is 2. 17000.
Explanation
GDP (Gross Domestic Product): It is the total value of all goods and services produced within a country in a specific period.
Depreciation: It refers to the decrease in value of an asset over time due to use, wear and tear, or obsolescence.
NDP (Net Domestic Product): This is calculated by subtracting depreciation from GDP. It provides a better indication of an economy's annual productive capability and wealth generation by accounting for the loss in value of capital goods due to depreciation.
By subtracting depreciation from GDP, we get a clearer picture of an economy’s net output or refreshed value of wealth created in a certain period.
