An example of a non-factor payment would be
A) income taxes.
B) net indirect taxes.
C) labour income.
D) production of goods sold overseas.

Question

Quizplus · Accepted Answer

Non-factor payments refer to payments made to factors of production for goods and services that they did not produce. Net indirect taxes, such as sales taxes and value-added taxes, are not payments to factors of production and are therefore a non-factor payment. Income taxes (A) are paid by individuals or businesses and do not relate to payments made to factors of production. Labour income (C) is a payment made to a factor of production (labour) for their contribution to the production process. The production of goods sold overseas (D) is also a payment to factors of production, such as labour or capital, for their contribution to the production of goods for export.

An Example of a Non-Factor Payment Would Be