Distinguish between net factor income from abroad and net exports.

OR

What are ‘non-monetary exchanges’? Discuss with a suitable example.

● Net factor income from abroad is the difference between the factor income received by the residents of the country from abroad and the factor income paid to a nonresident by the country.

● It is a part of the national income.

● Net Exports is the excess of the value for export of goods and services and the value of imported goods and services.

● It is a part of the domestic income.

OR

● Nonmonetary exchanges refer to the goods and services produced but not exchange for any monetary value.

● They often lead to the undervaluation of the gross domestic product of an economy.

● For example, all the household chores such as washing the clothes and cleaning the utensils are nonmonetary in nature.

● These are not included in the national income of a country.