Question

The government exports goods worth 60,000 and imports goods worth 65,000. Domestic final
consumption expenditure = 5,00,000, and there is no change in the stock of national capital.
Replacement investment = 10,000. There are no subsidies; rather the producers are to pay excise
duty of 5,000 to the government. Find factor income generated within the domestic economy.
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Answer 1

Answer:

Factor Income

=exports-imports+domestic final consumption expenditure-excise duty

=60000-65000+500000-5000

=490000

therefore; Factor Income= 490000/-