National Income Is the Sum of Factor Incomes Accruing to: (Choose the Correct Alternative)

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Solution

(a)Nationals

(b)Economic territory

(c)Residents

(d)Both residents and non-residents

Answer: (c) Residents

National income is referred to as the sum total of factor incomes earned by normal residents of a country in the form of wages, rent, profit and interest in an accounting year. Therefore, the correct answer is residents.

Also read:

National Income and Related Aggregates

Circular Flow of Income and Methods of Calculating National Income

National Income Formula

Difference Between National Income and Private Income

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R s . 200

R s . 190

with the help following data calculate : (1) private income ; (2) personal income; (3) personal disposable income .

PARTICULAR RS. IN CRORES

1. savings of private corporate sector 80

2.direct taxes paid by households 30

3. operating surplus 200

4.factor income from domestic product accruing to private sector 750

5.corporation tax 40

6.current transfrs from govt. dministrtiv deprtment 20

7.net factor income from abroad - 25

8.capital transfers from the rest of the world 60

9. current transfers from the rest of the world 45

10.savings of non-dpartmental enterprises 105

11.income from property and enterprnurship accruing to govt. administrative departments 200

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