Why is it important to account for the net foreign factor income when calculating domestic income instead of national income?
What will be an ideal response?
Domestic income calculates the total income earned in the country’s borders. This calculation includes both income earned from American-owned resources and income earned from foreign-owned resources located in the U.S. Net foreign factor income represents the income from foreign-owned resources. Without accounting for it, we would not have a complete picture of the total income earned domestically. National income does not take net foreign factor income into account because it is only concerned with income earned by Americans.
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A) higher; higher B) higher; lower C) lower; lower D) lower; higher
Ideally, insurance companies would like to charge
a. High premium to low risk clients b. Low premium to high risk clients c. The same premium to all clients d. High premium to high risk and low premium to low risk clients
In early 2013, two economists debated the question of whether:
a. the trade deficit should be reduced rapidly or steadily b. the United States was past its prime c. the percentage of health care to GDP was a warning sign for the economy d. none of these
An increase in the equilibrium price of electricity can be caused by
A. A decrease in the demand for electricity. B. An increase in the supply of electricity. C. An increase in the quantity demanded of electricity. D. An increase in the demand for electricity.