(a) “National Income is always greater than Domestic Income.” Do you agree with the given statement? Support your answer with a valid reason. (b) “In…

Net factor income from abroad (NFIA) is the component which depicts the difference between National income (NNP$\displaystyle _{FC}$) and Domestic income (NDP$\displaystyle _{FC}$).

National income can be less than the domestic income in case of negative NFIA i.e. when, Factor Income from abroad < Factor Income to abroad.

This is because Gross Domestic Product (GDP) by expenditure method takes into account the aggregate spending on all the final goods and services in the domestic territory, whether incurred by the residents or non-residents during a given period of time.