Question

Distinguished between factor income and transfer payment

Answer 1

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ItzHarsh★

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The difference between the two is whether or not the income (payment) 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 (or good) in return is transfer income.

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Answer 2

Answer:

$\textbf{\huge{\pink{Factor income}}}$

$\textbf{\huge{\pink{Transfer payment}}}$

The difference between the two is whether or not the income (payment) 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 (or good) in return is transfer income.