Advertisements
Advertisements
Question
Distinguish between Factor Income and Transfer Income.
Solution
| Factor Income | Transfer Income | |
| 1. | Factors income refers to income received by factors of production for rendering factor services in the production process. | Transfer income refers to income received without rendering any effective service in return. |
| 2. | It is received for providing factor land, labour, capital and enterprise services. | It is a unilateral (one-sided) concept. |
| 3. | Factor income of ordinary residents of a country is included in the national income. | It is not included in national income as it does not reflect any production of goods and services. |
| 4. | Factors of production are primary inputs, which are needed to produce goods and services. | It can be received either within the domestic territory of a country or from abroad. |
| 5. | Examples: rent, wages, interest and profit. | Example: Old age pension, scholarship, etc. |
APPEARS IN
RELATED QUESTIONS
Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores. Net Factor Income from Abroad was Rs 100 crores. The value of Indirect taxes − Subsidies was Rs 150 crores and National Income was Rs 850 crores. Calculate the aggregate value of depreciation.
Net National Product at Factor Cost of a particular country in a year is Rs 1,900 crores. There are no interest payments made by the households to the firms/government, or by the firms/government to the households. The Personal Disposable Income of the households is Rs 1,200 crores. The personal income taxes paid by them is Rs 600 crores and the value of retained earnings of the firms and government is valued at Rs 200 crores. What is the value of transfer payments made by the government and firms to the households?
An example of transfer payments is:
Which of the following is an example of Transfer Income?
If factor income received from abroad is equal to factor income paid abroad, then which of the following is not a valid statement?
Factor income of household sector is equal to ______.
The tendency of the people to believe the currency of nominal value at present to be equal to purchasing power at a previous point is called ______.
The relationship between money supply and price level under Quantity theory of money is ______.
The subject of the Study of Macro Economics is:
Macro Economics Studies:
Which one is included in National Income?
Which one is included in National Income?
State the meaning of retained earning.
Export are not a part of 'Net Factor Income from abroad'. Elaborate the reason behind the given statement.
Distinguish between net export and net factor income from abroad.
State the meaning of 'normal resident' of a country.
