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Find the odd word out: Theory of factor pricing: Profit, interest, unemployment allowance, rent - Economics

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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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