To determine National Income from Gross National Product, we must subtract depreciation or consumption of fixed capital from Gross National Product. The difference between Net National Income and Gross National Product is that National Income excludes depreciation, since it represents the value of goods and services produced domestically minus the used up portion of capital.

1. What calculations must you make to determine National Income from Gross National Product?
Solution
What calculations must you make to determine National Income from Gross National Product?
Answer: Since the question is talking about the difference between the national income and
gross national product, here we can conlcude that national income stands for the Net
National Income. Hence, difference between the Net national income and Gross National
income or Gross national product, is made by the inclusion and exclusion of Cosumption of
capital or depreciation
We must subtract the depreciation or consumption of fixed capital from Gross national
product to calculate the national income.