DAILY CURRENT AFFAIRS QUIZ – 31 January 2025

Answer: c) Transfer incomes

Explanation: Incomes like gifts, donations, taxes, fines, etc., which do not involve any production activity and represent the transfer of money without goods or services, are known as transfer incomes.

Answer: b) Money facilitates trade but is not a productive resource.

Explanation: Some economists do not consider money in hand as capital because money merely facilitates trade and is not in itself a productive resource. Only capital goods such as machinery and tools bought by money are used to produce goods and services.

Answer: c) Gifts

Explanation: Non-factor income includes money receipts that do not involve any sacrifice on the part of the recipients, such as gifts, donations, taxes, fines, etc.

Answer: a) Factor income

Explanation: Factor income is the income accruing to factors of production (land, labor, capital, entrepreneurship) in return for the services rendered to the production unit, such as rent, wages, interest, and profit.

Answer: d) Profit

Explanation: The income accruing to the entrepreneur for combining land, labor, and capital and earning a profit is termed as profit.