Question

Distinguish between factor income and transfer income.​

Answer 1

Explanation:

Factor Payment (Income):

1. It comprises rent, wages, interest and profit.

2. It is received in return for rendering productive service.

3. It is an earned income (earning concept).

4. It is bilateral payment.

5. It is included in national income.

Transfer Payment (Income):

1. It comprises gifts, subsidies, donations, scholarships, etc.

2. It is received without providing any good or service in return.

3. It is an unearned income (receipt concept).

4. It is unilateral payment.

5. It is not included in national income.

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Answer 2

Answer:

HELLO BUDDY:)

HERE IS YOUR ANSWER;

the income received is for rendering productive service. Payment received in exchange for rendering productive service is factor income whereas the one received without providing any service in return is transfer income.

HOPE IT HELPS YOU^_^

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