National Income — Important Questions

Production by citizens within country boundaries, Production by foreign citizens within country boundaries, Final goods and services only

GDP includes all production within a country's boundaries regardless of citizenship, but excludes production by citizens abroad. Only final goods are counted to avoid double counting.

True

Net Domestic Product (NDP) is indeed calculated by subtracting depreciation from Gross Domestic Product (GDP): NDP = GDP - Depreciation.

Double counting, Self-consumption, Tax evasion, Illegal income

Major problems include double counting, difficulty in valuing self-consumption, tax evasion leading to underestimation, and exclusion of illegal income. High literacy would actually help in measurement.

Estimated rent of owner-occupied houses

Imputed rent is the estimated rental value of houses occupied by their owners. It's included in national income calculation even though no actual rent is paid.