Concept:Transfer income is money received without giving any goods or services in return.
Examples include pensions, welfare benefits, and scholarships.
It is not a reward for productive activity.
Explanation:Dividends are payments from company profits to shareholders.
So dividends are factor income from investment and not transfer income.
Rent is the payment for the use of land and is a factor reward.
Therefore rent is not transfer income.
Pensions are paid to retired persons without any current service being rendered.
Hence pensions are considered transfer income.
Interest is the payment made for the use of borrowed capital.
So interest is also factor income, not transfer income.
Thus among the given options, only pensions qualify as transfer income.
Answer:C. pensions