Chapter-$$2$$: SOME BASIC CONCEPTS OF MACROECONOMICS

Flashcards covering vocabulary and key distinctions between income types and economic territories from Chapter-$$2$$.

Factors of Production

Land, labour and capital.

Factor Income

Income offered against factor of production, including Rent, Interest, salary, and profit.

Transfer Income

Income offered without factor of production, including Subsides tax, charity, and donation.

Domestic Income

Income earned inside the domestic country.

National Income

Income earned inside the country as well as outside the country.

Nature of Factor Income

It is included in both national income and domestic income.

Nature of Transfer Income

It is neither included in national income nor in domestic income.

Factor Income Concept

An earning concept.

Transfer Income Concept

A receipt concept.

Domestic Territory

All Area Concern with a country economy.