Factor income paid to non-residents within the domestic territory of a country leads to:
Factor income paid to non-residents within the domestic territory of a country leads to:
(a) Increase in Domestic Income
(b) Decrease in National Income
(c) Both (a) and (b)
(d) None of these
Anurag Pathak Changed status to publish December 14, 2023
Ans – (c)
Explanation:-
Factor income paid to non-residents within the domestic territory increases the domestic income as
Domestic income is the income earned from the domestic territory by both residents and non-residents.
Factor income paid to non-residents decreases the national income as it is the factor income to abroad and deducted from the domestic income to get the national income.
National income earned by residents within the domestic territory and from the rest of the world.
Anurag Pathak Changed status to publish December 14, 2023
