Concept:Depreciation is the reduction in value of capital goods due to wear and tear.
When depreciation is subtracted from Gross National Product, we get a net measure of national income.
Explanation:Gross National Product includes the total market value of all final goods and services produced by residents of a country in a year.
This total value also includes the loss of value of machinery and equipment during production.
That loss, called depreciation or capital consumption allowance, must be removed to find the actual income available after maintaining existing capital.
So, subtracting depreciation from Gross National Product gives Net National Product.
Answer:GNP−Depreciation=Net National ProductTherefore, the correct option is
C. net national product.