Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Domestic income is the sum of factor incomes accruing to.

Options:

Residents

Residents and non-residents

Nationals

Economic territory

Correct Answer:

Residents

Explanation:

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.