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Economics · 2022 · 2 marks
CBSE 2022 · Region 5 · Set 2 · Q4
(a) Distinguish between Factor Cost and Market Price.
(a)
Distinguish between Factor Cost and Market Price.
OR
(b)
Distinguish between Factor Income and Transfer Income.
Marking-scheme solution
(a)
Factor cost refers to all factor payments made by the production units to the factors of production for rendering their productive services.
Whereas, market price is the price at which a commodity is sold in the market. Market price is sum total of factor cost and net indirect taxes.
OR
(b)
Factor income is the income received by the factors of production for rendering their services to the firms.
Whereas, transfer income is unilateral income received without rendering any goods and services.
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CBSE Class 12 Economics past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.