Consider the following statement.
“National income is more than domestic income in case of an open economy like India.” What do you think?

Sometimes correct

The correct answer is option 3: Sometimes correct

National income might sometimes be more than domestic income and sometimes less than domestic income. Difference between the two is NFIA (Net Factor Income Abroad) which can be positive (net factor income FROM abroad) and it can be negative also (net factor income TO abroad). If NFIA is positive, national income will be greater than domestic income and if NFIA is negative, then national income will be smaller than domestic income.