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Question : Which of the following should be included in national income or domestic income?

 

Option 1: Income earned by foreign residents within the domestic territory

Option 2: Income earned by domestic residents outside the domestic territory

Option 3: Income earned by foreign residents outside the domestic territory

Option 4: Income earned by domestic residents within the domestic territory


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Income earned by domestic residents within the domestic territory


Solution : The correct answer is (d) Income earned by domestic residents within the domestic territory

National income refers to the total income earned by the residents of a country, regardless of whether it is earned within the country's domestic territory or abroad. Domestic income, on the other hand, specifically refers to the income earned by residents within the country's domestic territory. Income earned by domestic residents within the domestic territory represents the income earned by the residents of the country within its domestic territory, which falls under the scope of both national income and domestic income calculations.

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