Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

The Household receive transfer payments from Government and firms (Pension, Scholarship, Prizes, etc.). They are a part of :

Options:

Company Income

Government Income

Pocket Income

Personal Income

Correct Answer:

Personal Income

Explanation:

Personal Income (PI) ≡ NI – Undistributed profits – Net interest payments made by households – Corporate tax + Transfer payments to the households from the government and firms.