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Net domestic product accounts for capital that has been consumed over the year in the form of housing, vehicle, or machinery deterioration. The depreciation accounted for is often referred to as " capital consumption allowance " and represents the amount of capital that would be needed to replace those depreciated assets. [ 3 ]
NDP: Net domestic product is defined as "gross domestic product (GDP) minus depreciation of capital", [6] similar to NNP. GDP per capita: Gross domestic product per capita is the average market value rendered per person. GNI per capita: Gross national income per capita is related to average income per person and mean income.
Although the net national product is a key identity in national accounting, its use in economics research is generally superseded by the use of the gross domestic or national product as a measure of national income, a preference which has been historically a contentious topic (see e.g. Boulding (1948) [3] and Burk (1948) [4]).
The Nigerian Bureau of Economic Analysis,'A Guide to the National Income and Product Accounts of N Very helpful in understanding the accounts; also contains historical information and is an important source of information for this article.
In addition to gross measures of output and income such as GDP and gross national income (GNI), National Accounts include net measures such as net domestic product (NDP) and net national income (NNI), derived by deducting CFC from the corresponding gross measure. GDP is the most accurate measure of aggregate economic activity.
In national income accounting, net national income (NNI) is net national product (NNP) minus indirect taxes. [1] Net national income encompasses the income of households, businesses, and the government.
Green Accounting, however, uses the System of Environmental Economic Accounting (SEEA), which focuses on the depletion of scarce natural resources and measures the costs of environmental degradation along with its prevention. Thus, the NDP is newly defined as Green NDP, or also known as EDP. The green accounting formula is:
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...