Question

Classify the following as factor income or transfer income :
(i) Old age pension.
(ii) Salary received by Amit from a company.
(iii) Financial help to earthquake victims.
(iv) Rent received from buildings.
(v) Wages received from employer.
(vi) Birthday gift received from a relative.
(vii) Rent free accommodation from employer.
(viii) Donations received by a charitable trust.

Answer 1

Factor income : (ii), (iv), (v), (vii), Transfer income : (i), (iii), (vi), (viii)