If domestic income is ₹3,000 crore, factor income received from abroad is ₹220 crore and factor income paid abroad is ₹370 crore, what is national income?
Answer and explanation
Correct answer: ₹2,850 crore
National income is obtained by adding net factor income from abroad to domestic income. Net factor income from abroad equals factor income received from abroad minus factor income paid abroad: ₹220 crore − ₹370 crore = −₹150 crore. Therefore, national income is ₹3,000 crore − ₹150 crore = ₹2,850 crore.
Frequently asked questions
What is the correct answer to this question?
₹2,850 crore
Why is this the correct answer?
National income is obtained by adding net factor income from abroad to domestic income. Net factor income from abroad equals factor income received from abroad minus factor income paid abroad: ₹220 crore − ₹370 crore = −₹150 crore. Therefore, national income is ₹3,000 crore − ₹150 crore = ₹2,850 crore.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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