Statement 1: Net factor income from abroad is positive when income earned from abroad is less than income paid to abroad
Statement 1: Net factor income from abroad is positive when income earned from abroad is less than income paid to abroad.
Statement 2: Net factor income from abroad is negative in a closed economy as such economy does not deal with the rest of the world sector.
Alternatives:
(a) Both the statements are true.
(b) Both the Statements are false.
(c) Statement 1 is true and Statement 2 is false.
(d) Statement 2 is true and Statement 1 is false.
Anurag Pathak Changed status to publish December 6, 2023
Ans – (b)
Statement 1: It’s false,
net factor income from abroad is positive when income earned from abroad is more than the income paid to abroad.
Statement 2: It’s false
Net factor income from abroad is zero in a closed economy as such economy does not deal with the rest of the world sector.
Anurag Pathak Changed status to publish December 6, 2023
