Practicing Success
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Which statement is true to get Net factor income from abroad? |
Factor income from abroad + factor income to abroad Factor income from abroad - factor income to abroad Factor income to abroad - factor income from abroad Factor income to abroad > factor income from abroad |
Factor income from abroad - factor income to abroad |
Net factor income from abroad = Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy). Net factor income from abroad is calculated by subtracting factor income to abroad from factor income from abroad. This means that the statement "Factor income from abroad - factor income to abroad" is true. |