If wages are ₹800 crore, employer social contributions are ₹100 crore, rent is ₹200 crore, interest is ₹150 crore, profit is ₹350 crore and mixed income is ₹400 crore, what is domestic factor income?
Answer and explanation
Correct answer: ₹2,000 crore
Domestic factor income is the sum of compensation of employees, operating surplus and mixed income. Compensation of employees includes wages of ₹800 crore plus employer social contributions of ₹100 crore. Adding rent ₹200 crore, interest ₹150 crore, profit ₹350 crore and mixed income ₹400 crore gives ₹800 + ₹100 + ₹200 + ₹150 + ₹350 + ₹400 = ₹2,000 crore.
Frequently asked questions
What is the correct answer to this question?
₹2,000 crore
Why is this the correct answer?
Domestic factor income is the sum of compensation of employees, operating surplus and mixed income. Compensation of employees includes wages of ₹800 crore plus employer social contributions of ₹100 crore. Adding rent ₹200 crore, interest ₹150 crore, profit ₹350 crore and mixed income ₹400 crore gives ₹800 + ₹100 + ₹200 + ₹150 + ₹350 + ₹400 = ₹2,000 crore.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
