What are various constituents of domestic factor income? Generation of income refers to the generation of income of the factors in the production process. Every production involves flow of goods, production of output also leads..
What are the various factors that determine supply? A supply schedule and supply curve show that the supply of a product is function of its price. However, the supply depends not only on the price of a product but on several factors.
How the price of a factor of production is determined by the forces of demand and supply? The marginal productivity theory of factor pricing is Incomplete by itself. It suffers from many defects.
Charles Spearman advanced Two-Factor Theory of intelligence in 1927. It was a theory of trait organization based on the statistical analysis of test scores. Spearman pointed out that all intellectual activities have a single common factor called the general factor or "g" factor.
Under increasing returns to a variable factor only one factor is variable and others are fixed for increasing output more and more units of variable factor are employed.
Generally, there are three components of Domestic factor Income. There are: (i) Compensation of employees (ii) Operating surplus (iii) Mixed income of the self-employed.