If A person get his income from interest of money that is given to another person for consumption means A person give loan to B person for consumption and in return B person give interest to A person
Now A person income from interest is consider factor income or not ?
dear student
Factor income refers to the flow of income that is derived from factor of production.
The interest received in the above mention question will not be considered as factor income as it is a non-factor receipt, as the loan is not used for production but for consumption.
Regards
Factor income refers to the flow of income that is derived from factor of production.
The interest received in the above mention question will not be considered as factor income as it is a non-factor receipt, as the loan is not used for production but for consumption.
Regards