The Correct Answer is GNP – Depreciation. Explanation & Key Takeaways: • Net National Income is Gross National Income or Gross National Product less depreciation. • When depreciation is deducted from the GNP, we get Net National Income. Important Notes: • National income • It is the sum of income earned by its residents from the factor services rendered to the production units, both within and outside the geographical boundaries of the country. • GNP • Gross National Product is defined as the total market value of all final goods and services produced in a year by Nationals of a country both inside and outside the country’s territory. • Depreciation • Depreciation represents how much of an asset's value has been used up.