Match List-I with List-II.
| List -I | List-II | ||
| Earnings | Factor Income/Transfer Income | ||
| (A) | Salaries of Government staff | (I) | Profit |
| (B) | Dividend | (II) | Mixed Income |
| (C) | Self employed person | (III) | Compensation of Employees |
| (D) | Gifts | (IV) | Transfer Income |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : (A)-(III),(B)-(I),(C)-(II),(D)-(IV)
- (A) Salaries of Government staff corresponds to (III) Compensation of Employees
- (B) Dividend corresponds to (I) Profit
- (C) Self-employed person corresponds to (II) Mixed Income
- (D) Gifts corresponds to (IV) Transfer Income. The matches are as follows:
(A) salaries or Government start: This corresponds to the compensation received by employees, which is the earnings in exchange for their labor. Thus, it matches with (III) Compensation of Employees.
(B) Dividend: Dividends represent the share of profits distributed to shareholders Therefore, it corresponds to (I) Profit.
(C) Self-employed person: A self-employer person earns a mixed income, combining elements of both labor income and profit from their business. Hence, it matches with (II) Mixed Income.
(D) Gifts : Gifts do not represent income earned through productive activities but are rather transfer payments. Therefore, it corresponds to (IV) Transfer Income.