The aggregate value of goods and services produced within the domestic territory of a country, which includes the replacement investment of the depreciation of capital stock, is called:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Gross Domestic Product
Domestic means produced within the country’s territory. Gross means depreciation is included. Together these describe GDP.
NDP leaves depreciation out, and GNP and NNP add net factor income from abroad.
NCERT (2026-27): Glossary: “Gross Domestic Product (GDP) – Aggregate value of goods and services produced within the domestic territory of a country. It includes the replacement investment of the depreciation of capital stock.” Glossary: “Net Domestic Product (NDP) – Aggregate value of goods and services produced within the domestic territory of a country which does not include the depreciation of capital stock.” |