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Question
Find the odd word out:
Theory of factor pricing:
Options
Profit
interest
unemployment allowance
rent
MCQ
One Word/Term Answer
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Solution
Unemployment allowance
Explanation:
Profit, interest, and rent are all factor payments – they are the incomes earned by the factors of production:
- Profit → entrepreneur
- Interest → capital
- Rent → land
Unemployment allowance, however, is not a factor payment. It is a transfer payment given by the government to support unemployed individuals and does not arise from the use of any factor of production.
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