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NDP and NNP

Which of the ...

Question

Which of the following is not considered a factor income?

A

Rent

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B

Wages

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C

Gifts from abroad

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D

Profit

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Solution

The correct option is C Gifts from abroad
Gifts from abroad are a type of transfer payments which do not create any additional output or income in the economy, hence, they are not a type of factor income.

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