Question

Which expression represents Private Income under the Domestic Product Approach?

Options

• \[\text{Factor income from NDP accruing to private sector} + \text{National debt interest} + \text{Net factor income from abroad} + \text{Current transfers from government} + \text{Other net transfers from rest of the world}\]

• \[\text{Domestic Income} + \text{Government income} - \text{Net transfer payments}\]

• \[\text{NNP at FC} - \text{Government property \& entrepreneurial income} - \text{Savings of non-departmental govt. enterprises}\]

• \[\text{National Income} - \text{Transfer payments} - \text{Interest on public debt}\]

Answer 1

The Domestic Product Approach begins with factor income from NDP accruing to private sector. It adds National debt interest, Net factor income from abroad, Current transfers from government, and Other net transfers from rest of the world.