A few sums can be done in order to work out the Net Product
Net Product or Net National Product is the monetary value of finished goods and services produced by citizens living in a particular country. The Net National Product can be measured whether individuals are overseas or resident, during the time period being measured. In theory, you can apply a standard formula to get the final value for the Net National Product. You can do this by subtracting the amount of Gross National Product required to purchase new goods in order to maintain existing stock. Alternatively, Net National Product can be calculated as the total payroll compensation, plus the net indirect tax on current production, plus the operating surpluses.
Instructions
1. Find out the value of the gross national product for the time period in question.
2. Subtract the gross national product and the amount required to purchase new goods in order to replenish existing stock. This will give you the value of depreciation on the investments in question.
3. Use the standard formula to enter the numbers to have already worked out. The standard formula is the depreciation subtracted by the gross national product minus that equals the net national product. These are the numbers you found after carrying out steps 1 and 2.
4. Apply and work out the exact formula to the numbers you have found. The figure you reach will be the net national product value.
