Practicing Success
Domestic income is the sum of factor incomes accruing to. |
Residents Residents and non-residents Nationals Economic territory |
Residents |
The correct answer is option (1) : Residents Domestic income refers to the total income earned by factors of production (land, labor, capital, and entrepreneurship) located within a country's borders, regardless of the nationality of the owner. So, it focuses on where the factors of production are located, not the nationality of the owner. |