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Question

Domestic Income of a country can be more than its National Income.

A
True
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B
False
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Solution

The correct option is A True
Domestic Income of a country can be more than its National Income- it is a true statement. This situation occurs when net factor income from abroad is negative. Hence, NDP(at factor cost) or Domestic income becomes greater than the NNP(at factor cost) or National Income.

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