Factor income is income derived from selling the services of factors of production. In the case of labour, this means wages, plus the part of the incomes of the self-employed which is a reward for their own labour. Income from land is rents, including part of the incomes of the self-employed, and part of the imputed incomes of owner-occupiers of houses. Incomes from capital and entrepreneurship are received as dividends, interest, the retained profits of companies and the part of the incomes of the self-employed which is a return on their own capital and entrepreneurship.. It is the income earned by providing productive services.Example salary,rent,interest,etc.it is bilateral in nature and is included in the estimation of national income of the country
Famous quotes containing the words factor and/or income:
“In his very rejection of art Walt Whitman is an artist. He tried to produce a certain effect by certain means and he succeeded.... He stands apart, and the chief value of his work is in its prophecy, not in its performance. He has begun a prelude to larger themes. He is the herald to a new era. As a man he is the precursor of a fresh type. He is a factor in the heroic and spiritual evolution of the human being. If Poetry has passed him by, Philosophy will take note of him.”
—Oscar Wilde (1854–1900)
“The question for the country now is how to secure a more equal distribution of property among the people. There can be no republican institutions with vast masses of property permanently in a few hands, and large masses of voters without property.... Let no man get by inheritance, or by will, more than will produce at four per cent interest an income ... of fifteen thousand dollars] per year, or an estate of five hundred thousand dollars.”
—Rutherford Birchard Hayes (1822–1893)