Match List-I with List-II:
| List-I | List-II | ||
|---|---|---|---|
| (A) | Income tax | (I) | Transfer payment to households |
| (B) | Fine paid to the government | (II) | Other current transfer from the rest of the world |
| (C) | Scholarship received by a student | (III) | Personal tax payment |
| (D) | Aid received from a foreign country | (IV) | Non-tax payment |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Payments by households to the government and receipts with no service in return fall into different groups.
| List-I | List-II | Reason |
|---|---|---|
| (A) Income tax | (III) Personal tax payment | Income tax is the book’s example of a personal tax payment. |
| (B) Fine paid to the government | (IV) Non-tax payment | A fine is a non-tax payment. |
| (C) Scholarship received by a student | (I) Transfer payment to households | A scholarship is a transfer payment to households. |
| (D) Aid received from a foreign country | (II) Other current transfer from the rest of the world | Aid from abroad is an other current transfer from the rest of the world. |
NCERT (2026-27): “2.3 Some Macroeconomic Identities … The households receive transfer payments from government and firms (pensions, scholarship, prizes, for example) which have to be added to calculate the Personal Income of the households. …” “2.3 Some Macroeconomic Identities … If we deduct the Personal Tax Payments (income tax, for example) and Non-tax Payments (such as fines) from PI, we obtain what is known as the Personal Disposable Income. …” “National Disposable Income and Private Income The idea behind National Disposable Income is that it gives an idea of what is the maximum amount of goods and services the domestic economy has at its disposal. Current transfers from the rest of the world include items such as gifts, aids, etc.” |