Statement 1: Domestic Income considers all producers who are normal residents of the country.
Statement 1: Domestic Income considers all producers who are normal residents of the country.
Statement 2: Domestic Income does not include NFIA.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Anurag Pathak Changed status to publish December 7, 2023
Ans – (d)
Statement 1 is false
Domestic Income considers all producers who are normal residents and non-residents of the country.
Statement 2 is true
Domestic income only includes the value of goods and services produced within the domestic territory of a country. It does not include income earned from rest of the world.
Thus Domestic Income does not include NFIA (net factor income from abroad)
Anurag Pathak Changed status to publish December 7, 2023
