Chapter-3: National Income & Related Aggregates
NATIONAL INCOME
National Income is the sum total of factor incomes earned by normal residents of a country (within the domestic territory and from rest of the word) during the period of an accounting year.
FACTOR INCOME VS TRANSFER INCOME
Factor Income: These are the incomes received by the owners of factors of production for rendering their factor services to the producers. In other words, these are earned income, e.g. income from land is rent, salaries of Indians working in foreign embassy which is located in India.