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Question : Which of the following are factor income?

  1. Compensation received from employer.
  2. Birthday gift received from parents.
  3. Claim received from Insurance company.
  4. Pension received by the resident.

Option 1: 1&3

Option 2: 2&4

Option 3: 1&2

Option 4: 3&4


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: 1&3


Solution :

Income from the resources used to manufacture goods or services is referred to as factor income.
For example- Compensation received from employer, Claim recived from Insurance company, etc.
Any money that a recipient receives without giving the payer any products, services, or assets is referred to as transfer income.
For example- Birthday gift received from parents, Pension received by the resident, etc.
Hence, Option A is correct.

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