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Economics glossary · The global economy

Primary income

What primary income means in economics, as one of components of the current account, with an example and a question to test yourself.

Definition
Primary income
Primary income records income that residents earn abroad, mainly returns on investments and pay for work, against the same income paid to non-residents.
Example

Can you think of an example of primary income?

Test yourself

Can you name the four components of the current account?

Learn it properly: the module

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