Question : Which of the following is an example of a factor income?
Option 1: Dividends received by a shareholder
Option 2: Rent paid by a tenant
Option 3: Taxes paid by a business
Option 4: Interest earned on a savings account
Correct Answer: Interest earned on a savings account
Solution : The correct answer is (d) Interest earned on a savings account
Interest earned on a savings account represents a return on the capital factor as well, as individuals provide their savings (capital) to financial institutions, which then use those funds for lending and investment activities. The interest earned is a form of income derived from the use of capital.
Question : Which of the following is an example of a transfer payment?
Option 1: Wages earned by a factory worker
Option 2: Dividends received by a shareholder
Option 3: Pension payment to a retired government employee
Option 4: Rent paid by a tenant
Question : Which of the following is an example of a non-market transaction?
Option 1: Sale of a car by a dealership
Option 2: Purchase of groceries by a household
Option 3: Payment of rent by a tenant
Option 4: Transfer payment by the government
Question : Which of the following is an example of a capital expenditure?
Option 1: Purchase of groceries by a household
Option 2: Payment of salaries by a company
Option 3: Investment in new machinery by a factory
Option 4: Payment of rent by a tenant
Question : Which of the following is not an example of factor payment?
Option 1: Interest
Option 2: Wages
Option 3: Rent
Option 4: Pension
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