Match List-I with List-II
List-I List-II (A) GNP at Market price (I) + NFIA (B) GDP at Market price (II) NI - Undistributed profits - Net interest payments made by households - Corporate tax + Transfer payments to the households from the government and firms (C) Personal income (III) C + I + G + X - M (D) Private income (IV) Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) GNP at Market price | (I) + NFIA |
| (B) GDP at Market price | (II) NI - Undistributed profits - Net interest payments made by households - Corporate tax + Transfer payments to the households from the government and firms |
| (C) Personal income | (III) C + I + G + X - M |
| (D) Private income | (IV) Factor income from net domestic product accruing to the private sector + National debt interest + Net factor income from abroad + Current transfers from government + Other net transfers from the rest of the world |
Choose the correct answer from the options given below:
Solution
Option 1 -> (A)-(I), (B)-(II), (C)-(III), (D)-(IV). This incorrectly matches GDP at Market price with the personal income formula and Personal income with the expenditure approach.
Option 2 -> (A)-(III), (B)-(I), (C)-(II), (D)-(IV). This incorrectly matches GNP with the expenditure approach (C+I+G+X-M) which is the GDP formula.
Option 3 -> (A)-(I), (B)-(III), (C)-(II), (D)-(IV). This correctly matches all concepts with their definitions.
Option 4 -> (A)-(I), (B)-(IV), (C)-(III), (D)-(II). This incorrectly matches GDP with Private income formula and reverses Personal and Private income definitions.
Hence, Option 3: (A)-(I), (B)-(III), (C)-(II), (D)-(IV) -> GNP at Market price = GDP_MP + NFIA (I); GDP at Market price is calculated using expenditure approach as C+I+G+X-M (III); Personal income is National Income adjusted for undistributed profits, corporate taxes, and transfers (II); Private income includes factor income from NDP to private sector plus various transfers and interest (IV). This matching correctly aligns each national income aggregate with its proper definition or formula. -> correct
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