Q1:

Q. 1 Classify the following as factor income or transfer income:
(i) Unemployment allowances. 
(ii) Salary received by Rakesh from a company.
(iii) Financial help to earthquake victims.
(iv) Compensation received from the employer.
(v) Claim received from insurance company by an injured worker. 
(vi) Birthday gift received from a friend. 

Dear Student,
(i)Unemployment allowances: It is a transfer income.
(ii)Salary received by Rakesh from company : Factor income.
(iii)Financial help to earthquake victims: It is a transfer income.
(iv)Compensation received from the employer: Factor income.
(v)Claim received from insurance company by an injured worker : Transfer income. It is transfer income because insurance company is not the employer of that person.
(vi)Birthday gift received from a friend : It is a transfer payment.
Regards

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