Commerce Exam > Commerce Questions > State which one of the following is true .a)R...
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State which one of the following is true .
- a)Royalty is not a factor income
- b)Rent is a factor income
- c)Subsidies is a factor payment
- d)Tax is a factor income
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
State which one of the following is true .a)Royalty is not a factor in...
Explanation:
Factor income is the income that is earned through factors of production such as land, labor, capital, and enterprise. Here, we need to identify the factor income among the given options.
a) Royalty: Royalty is the amount paid to the owner of an asset for its use. It is not a factor income as it is not earned through any factor of production.
b) Rent: Rent is the payment made to the owner of land or any other asset for its use. It is a factor income as it is earned through land, which is a factor of production.
c) Subsidies: Subsidies are the financial assistance provided by the government to promote an industry or a product. It is not a factor payment as it is not earned through any factor of production.
d) Tax: Tax is a financial charge imposed by the government on individuals or businesses for the income earned or goods and services consumed. It is not a factor income as it is not earned through any factor of production.
Therefore, the correct answer is option B, Rent is a factor income.
Factor income is the income that is earned through factors of production such as land, labor, capital, and enterprise. Here, we need to identify the factor income among the given options.
a) Royalty: Royalty is the amount paid to the owner of an asset for its use. It is not a factor income as it is not earned through any factor of production.
b) Rent: Rent is the payment made to the owner of land or any other asset for its use. It is a factor income as it is earned through land, which is a factor of production.
c) Subsidies: Subsidies are the financial assistance provided by the government to promote an industry or a product. It is not a factor payment as it is not earned through any factor of production.
d) Tax: Tax is a financial charge imposed by the government on individuals or businesses for the income earned or goods and services consumed. It is not a factor income as it is not earned through any factor of production.
Therefore, the correct answer is option B, Rent is a factor income.
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State which one of the following is true .a)Royalty is not a factor in...
Yes B is absolutely right, because rent is that income which are earn under factor service like on land...
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