Question

Which expression correctly states Net Factor Income from Abroad?

Options

• \[NFIA = \text{Wages and salaries} + \text{Interest}\]

• \[NFIA = \text{Factor income received from abroad} - \text{Factor income paid to abroad}\]

• \[NFIA = \text{Factor income paid to abroad} - \text{Factor income received from abroad}\]

• \[NFIA = \text{Exports} - \text{Imports}\]

Answer 1

NFIA equals factor income received from abroad minus factor income paid to abroad. It is added to NDP at Factor Cost to obtain NNP at Factor Cost.