Question

Which of the following is a factor income
(a) oldage pension
(b) unemployment allowance
(c) interest received by a household from deposits in a bank

Answer 1

Explanation:

c...is a factor of income

Answer 2

Answer:

a) old age pension

Explanation:

a)Old age pension is paid to people after retirement who no longer provide any productive services in exchange. The government in this case collects taxes from working population and provide pension to older population in the form of government expenditure.

The pension is income for those who receive it, however, no new income is generated in the economy, hence it is a transfer payment.