Are domestic services a part of production
Answers
Answer:
Domestic income is the sum total of factor incomes generated by all the production units located within the domestic territory of a country during a period of account.
It does not matter whether the producer is the normal resident or foreigner. What is essential is that production is done within the domestic territory of the country. Again, domestic Income does not include ‘net factor Income earned from abroad’. Now, we discuss components of domestic income. In detail which facilitate solution of numerical sums.
(b) Components of Domestic Income:
Broadly speaking, components of domestic income (NDPFC) are Compensation of employees. Operating surplus (Rent + Interest + profit) and Mixed Income (see Section 6.6, part 19) but they are further sub-divided into following Individual actor incomes so as to facilitate solution of numerical sums and understanding of other aggregates.
Explanation:
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