Which of the following is NOT considered a factor payment?
A)rent
B)interest
C)transfer payments
D)wages

Question

Quizplus · Accepted Answer

Transfer payments are not a factor payment because they are payments made by the government to individuals or groups without any exchange of goods or services. Factors payments are payments made in exchange for the use of factors of production such as labor, capital, land, and entrepreneurial ability. Rent, interest, and wages are all considered factor payments because they are payments made to the owners of these factors in exchange for their use in production.

Which of the Following Is NOT Considered a Factor Payment