1.

Explain two differences between factor income and transfer income.

Answer»
Factor IncomeTransfer Income
These are incomes received by the owners of factors of production for rendering their factor services to the producers.These are all those unilateral payments meaning these incomes are not received for buying and selling of goods and services.
These are bilateral.These are unilateral.
These add value to economy and national income. These do no add value to economy and national income.


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