Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which among the following form the part of domestic factor income of India?

Options:

old age pension given by the government

factor income from abroad

salaries to Indian residents working in Russian Embassy in India

none of the above

Correct Answer:

none of the above

Explanation:

The correct answer is Option4: None of the above

Domestic factor income refers to income generated within the domestic territory of a country. Let's analyze each option:

  1. Old age pension given by the government: This is a transfer payment from the government and does not represent factor income generated within the country. Therefore, it does not form part of domestic factor income.

  2. Factor income from abroad: This represents income earned by residents of the country from their investments or work abroad. It is not generated within the domestic territory and is considered part of factor income from abroad, not domestic factor income.

  3. Salaries to Indian residents working in the Russian Embassy in India: Even though they are Indian residents, the Russian Embassy is considered foreign soil. Income earned there wouldn't be part of domestic factor income.