Question

What is the difference between domestic income (NDPFC) and national income (NNPFC) in terms of factor incomes?

Answer 1

Domestic Income (NDPFC) and
Factor Income (NNPFC)
1. Domestic income is the sum total of factor incomes generated within the domestic territory of a country no matter who generates this income either residents or non-residents.
1. Factor income is the sum total of factor incomes generated by residents of a country, no matter where this income is generated either with in the domestic territory or in rest of the world.
2.It does not include net factor income from abroad.
2.It includes net factor income from abroad.

Answer 2

Factor income is the sum total of factor incomes generated by residents of a country, no matter where this income is generated either with in the domestic territory or in rest of the world. It does not include net factor income from abroad.