Distinguish between GNP and NNP.

Exercises · Q10

Q. Distinguish between GNP and NNP.

Tamil Nadu DgeTextbookSubjectiveImportance★★★★★

29% · 10/35 Questions

🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

Gross National Product (GNP) extends GDP by including the net income earned by a country's own residents and firms from economic activity abroad, while excluding income earned within the country by foreign residents and firms that is repatriated out. Conceptually, $GNP = GDP + \text{Net Factor Income from Abroad}$ . GNP therefore reflects the income earned by a country's residents, wherever in the world that income was earned, rather than income generated only within its domestic territory.

Net National Product (NNP) takes GNP a step further by subtracting depreciation — the value of capital (machinery, buildings, equipment) that gets worn out or used up in the course of producing that year's output. Conceptually, $NNP = GNP - \text{Depreciation}$ . Since some of the capital used in production has to eventually be replaced just to maintain the existing productive capacity, NNP is considered a more accurate measure of the genuine net addition to a nation's income and wealth during the year, whereas GNP alone over …

Start your 14-day free trial to unlock the full solution →

Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2025Set MARCH5 marks
$Q. (a) Explain the objectives and characteristics of Special Economic Zones (SEZs).$
(OR)
$(b) Describe the qualitative aspects of Population.$
›Reveal solutionSolution
(a) SEZs are duty-free export enclaves set up to promote exports, attract FDI, create jobs and build infrastructure, with tax concessions and single-window clearance under the SEZ Act 2005. (b) The qualitative aspects of population are the health, education, skills, life expectancy and standard of living that determine the quality and productivity of a country's human resource.

PART (a): Objectives and characteristics of Special Economic Zones (SEZs)

A Special Economic Zone (SEZ) is a specially demarcated, duty-free geographical region set up to promote economic activity, established in India under the SEZ Act, 2005.

Objectives of SEZs:

Promotion of exports — to increase exports of goods and services and earn foreign exchange.

Attracting foreign investment (FDI) — to draw in foreign and domestic investment.

Generation of employment — to create additional job opportunities.

Development of infrastructure — to build world-class infrastructure facilities.

Boosting economic growth — to promote industrialisation and overall economic development.

Transfer of technology and skills.

Characteristics of SEZs:

They are treated as foreign territory for the purposes of trade operations, duties and tariffs.

Goods going into an SEZ are treated as exports and are largely duty-free.

Tax concessions and incentives are given to units in SEZs.

Single-window clearance for setting up units (simplified procedures).

Provision of world-class infrastructure — roads, power, telecom, water.

Relaxed rules to encourage manufacturing, services and exports.

PART (b): Qualitative aspects of Population

While the quantitative aspect of population deals with numbers, the qualitative aspect deals with the quality, efficiency and capability of the people — i.e. the quality of human resources. Its main elements are:

Health — good physical and mental health raises working efficiency; better nutrition and medical care improve quality.

Education and literacy — a literate, educated population is more skilled and productive. …
Start your 14-day free trial to see the full solution →

←Previous questionQ9 — Define Gross Domestic Product (GDP). Write the basic expenditure ident…→Next questionQ11 — "India's structural features as a developing economy are similar in br…

Q.Distinguish between GNP and NNP.

Concept understanding — Infrastructure (Economic and Social)

Q.Distinguish between GNP and NNP.

🎓Unlock everything free for 14 days

Unlock everything free for 14 days