Question

The sum of factor payments is equal to ______.

Options

• Domestic Income

• National Income

• Per Capita Real Income

• Per Capita Nominal Income.

Answer 1

The sum of factor payments is equal to the National Income.

Explanation:

National Income is the total income earned by the normal residents of a country in the form of factor payments such as wages, rent, interest, and profit. Therefore, the sum of all factor payments is equal to National Income.