Net Domestic Income at the factor cost refers to the:
A)total income earned by Canadian-supplied factors of production as wages, interest, rent and profit.
B)total income earned by foreign-supplied factors of production as wages, interest, rent and profit.
C)total income earned by foreign-supplied and Canadian-supplied factors of production as wages, interest, rent and profit.
D)total income earned by Canadian households.

Question

Quizplus · Accepted Answer

Net Domestic Income at factor cost refers to the total income earned by domestically supplied factors of production (such as labor, capital, and land) before any deductions for depreciation, taxes, or subsidies. This income includes wages, interest, rent, and profit earned by Canadian households and firms. Foreign-supplied factors of production are not included in this measure.

Net Domestic Income at the Factor Cost Refers to The