What is the term for the measure of the income earned by owners of factors of production used in making final goods and services?
A)gross domestic income
B)net domestic income at factor cost
C)retained earnings
D)personal income

Question

Quizplus · Accepted Answer

Net domestic income at factor cost is the term for the measure of income earned by owners of factors of production used in making final goods and services. It is calculated by subtracting depreciation from gross domestic product.

Option A is incorrect because gross domestic income is not a commonly used term in economics.

Option C is incorrect because retained earnings refer to the portion of a corporation's profits that is kept by the company rather than distributed as dividends to shareholders.

Option D is incorrect because personal income includes all income earned by individuals, not just income earned through factors of production.

What Is the Term for the Measure of the Income