Domestic income is the sum of factor incomes accruing to.

Economic territory

The correct answer is option (4) : Economic territory

Domestic income (also called Domestic Product) refers to the sum of all factor incomes generated within the economic territory of a country, regardless of whether the incomes go to residents or non-residents.

Why Option 1 (Residents) is incorrect here?

• "Residents" matter when we talk about National Income, which is the income earned by residents, whether inside the country or abroad.

• Domestic income is location-based, not residence-based.