Question 14. What is domestic income ?
Answer 14. Domestic income is defined as the value of all final goods and services produced by all the enterprises located within the domestic territory of a country during a year. These goods and services are produced domestically, both by the nationals or citizens of the country as well as foreign nationals working in this country. Thus, domestic income is the sum total of factor incomes generated by all the production units located within the domestic territory of a country during a hear. National product, on the other hand, refers to the amount of final goods and services of a country during a year, whether operating within the domestic territory of the country or outside.
Thus , national income is the sum total of factor incomes earned by normal residents of a country during a year.
National product = Domestic product +Net factor Income from Abroad