Which of the following is NOT included in domestic income?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Income earned by the non-residents outside the country.
Income earned by non-residents outside the country is not included in domestic income. Domestic income, or Gross Domestic Product (GDP), encompasses income generated within a country’s borders, including wages, profits, and rents earned by residents and industries operating within the country. It does not account for income earned by non-residents outside the country. Such income is considered in Gross National Income (GNI) calculations, which include earnings of residents from abroad.