Question

In the direct formula for National Income, what does \(R-P\) represent?

विकल्प

• Change in Inventories

• Net Receipts/Net Factor Income from Abroad

• Net Indirect Taxes

• Government investment

Answer 1

\(R-P\) represents Net Receipts or Net Factor Income from Abroad. It is the difference between factor income received from abroad and factor payments made abroad.