give meaning of factor income and transfer income ( give 5 pooints each with example ) ( experts don't provide any link )
Dear Student
Factor income:
1. A factor income is that income which is received by the factors of production (land, labour, capital, entrepreneur) for rendering their productive services in the course of production.
2. It is bilateral income.
3. It is included while calculating National Income.
4. It is an earned income (earning concept).
5. Example: Rent, wages
Transfer income:
1. A transfer income is that income which is received by an individual without giving anything in return (goods or service) to the giver.
2. It is a unilateral income.
3. It is not included while calculating National Income.
4. It is an unearned income (receipt concept).
5. Example: Grants, subsidies
Regards
Factor income:
1. A factor income is that income which is received by the factors of production (land, labour, capital, entrepreneur) for rendering their productive services in the course of production.
2. It is bilateral income.
3. It is included while calculating National Income.
4. It is an earned income (earning concept).
5. Example: Rent, wages
Transfer income:
1. A transfer income is that income which is received by an individual without giving anything in return (goods or service) to the giver.
2. It is a unilateral income.
3. It is not included while calculating National Income.
4. It is an unearned income (receipt concept).
5. Example: Grants, subsidies
Regards