Question

Match List-I with List-II:

List-I	List-II
(A) Non-monetary exchanges	(I) Services of housewives
(B) Old age pensions	(II) Factor income from abroad
(C) Dividends received from investment in shares	(III) Transfer income
(D) Profits earned by a foreign bank in India	(IV) Part of domestic income

Choose the correct answer from the options given below :

• A. (A)-(1), (B)-(3), (C)-(2), (D)-(4)
• B. (A)-(1), (B)-(3), (C)-(3), (D)-(4)
• C. (A)-(3), (B)-(4), (C)-(1), (D)-(2)
• D. (A)-(1), (B)-(2), (C)-(4), (D)-(3)

Answer 1

The Correct Option is B

The question involves matching items from List-I with those from List-II based on economic concepts. 

List-I	List-II
(A) Non-monetary exchanges	(I) Services of housewives
(B) Old age pensions	(II) Factor income from abroad
(C) Dividends received from investment in shares	(III) Transfer income
(D) Profits earned by a foreign bank in India	(IV) Part of domestic income

Now, let's match correctly:

• (A) Non-monetary exchanges: These typically include the services of housewives which are not compensated with money, associated with (I).
• (B) Old age pensions: This is a form of transfer income as they are income received without a corresponding good or service exchanged, linked to (III).
• (C) Dividends received from investment in shares: Usually considered transfer income because it involves income without a good produced currently, so it matches (III).
• (D) Profits earned by a foreign bank in India: These are typically part of the income generated within the country's boundaries and thus are part of domestic income, aligning with (IV).

Therefore, the correct match is: (A)-(1), (B)-(3), (C)-(3), (D)-(4).

Answer 2

The correct match involves non-monetary exchanges, transfer incomes, and factor incomes, which are key concepts in economics. These terms represent different forms of economic transactions and income distribution.

Non-monetary exchanges refer to transactions where goods and services are exchanged without the use of money. These exchanges are typically in-kind, meaning that the value is exchanged directly in terms of goods or services rather than through financial payments. Examples include bartering or the exchange of services without monetary compensation.

Transfer incomes are payments made from one individual or entity to another without a corresponding exchange of goods or services. These transfers often come in the form of social security payments, welfare benefits, or gifts. Transfer incomes are typically aimed at redistributing wealth and providing financial assistance to those in need.

Factor incomes refer to the income earned by individuals or entities in return for providing factors of production, such as labor, capital, and land. This includes wages, rents, interest, and profits. Factor incomes are the primary way in which individuals and businesses earn money through their contributions to the production process.