Net National Product (NNP) Net National Product (NNP) in an ec | UPSC Notes EPFO Labour Law

Net National Product (NNP)
Net National Product (NNP) in an economy is the GNP after deducting the loss due to depreciation.

NNP = GNP – Depreciation

NNP at Factor Cost:It is the value of NNP when the value of goods and services is taken at the production cost.
NNP at Market Price:It is the value of NNP at consumer cost.
NNP at market cost = NNP at factor cost + Indirect taxes – Subsidies

Closed Economy: An economy that does not maintain any economic relations with the rest of the world. Economic Goods: Those goods which are scarce in supply and, hence, command a price.
Nominal National Income: The money value of all the final goods and services produced in an economy during a year, estimated at current prices.
Real National Income: The money value of all the final goods and services produced in an economy during a year, estimated at some fixed prices.
Subsidy: It is the grant given on current account by the Government to the private industries and public corporations for selling certain goods at a price fixed by the Government.


National Income Measurement:
➨ Primary sector: all production units engaged in exploitation of natural resources like Agriculture, Fishing, Mining and Quarrying , Forestry and Logging
➨ Secondary sector: all production units engaged in transforming one good to another like Registered manufacture, unregistered, Construction, Electricity Gas Water supply
➨ Tertiary sector: all units engaged in producing services like Banking&Insurance, Trade, hotel, restaurant, transport, storage , Real estate dwelling, Public administration & defence, other services.