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:
“It is change, continuing change, inevitable change, that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be.... This, in turn, means that our statesmen, our businessmen, our everyman must take on a science fictional way of thinking.”
—Isaac Asimov (1920–1992)
“Happy are those who find wisdom, and those who get understanding, for her income is better than silver, and her revenue better than gold. She is more precious than jewels, and nothing you desire can compare with her. Long life is in her right hand; in her left hand are riches and honor. Her ways are ways of pleasantness, and all her paths are peace. She is a tree of life to those who lay hold of her; those who hold her fast are called happy.”
—Bible: Hebrew, Proverbs 3:13-18.