Distinguish between factor income and transfer income.

Question

The differences between these two are given below:Factor Income (or Payment)Transfer Income (or Payment)It is received i...

Accepted Answer

The differences between these two are given below:Factor Income (or Payment)Transfer Income (or Payment)It is received i...

Factor Income (or Payment)	Transfer Income (or Payment)
It is received in return for rendering productive service.	It is received without providing any good or service in return.
It comprises rent, wages, interest and profit.	It comprises gifts, subsidies donations, scholarships etc.
It is an earned income and hence, an earning concept.	It is an unearned income and hence a receipt concept.
It is included in national income.	It is not included in national income.