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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

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 :

Options:

(A)-(IV),(B)-(I),(C)-(II),(D)-(III)

(A)-(IV),(B)-(II),(C)-(I),(D)-(III)

(A)-(III),(B)-(II),(C)-(I),(D)-(IV)

(A)-(III),(B)-(I),(C)-(II),(D)-(IV)

Correct Answer:

(A)-(III),(B)-(I),(C)-(II),(D)-(IV)

Explanation:

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.

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