Q. Differentiate between factor income and domestic income.
Answers
Answered by
8
Explanation:
Factor income is income received from the factors of production: the inputs used in the production of goods or services in order to make an economic profit. Factor income on the use of land is called rent, income generated from labor is called wages, and income generated from capital is called profit. whereas Domestic factor incomes is the compensation of employees and operating surplus originating in domestic production; in other words, included in the valued added of resident producers. Source Publication: The OECD Economic Outlook: Sources and Methods.
Similar questions