What does net domestic income at factor cost measure?
A)aggregate income minus the statistical discrepancy
B)GDP minus depreciation
C)the income earned by owners of factors of production used in making final goods and services
D)the income received by persons after taxes

Question

Quizplus · Accepted Answer

Net domestic income at factor cost measures the income earned by owners of factors of production (i.e. labor, capital, land) used in the production of final goods and services. It is calculated by subtracting depreciation from GDP. It does not include taxes or the statistical discrepancy.

What Does Net Domestic Income at Factor Cost Measure