Transfer payments are excluded from national income because they: MCQ with Answer and Explanation

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Transfer payments are excluded from national income because they:

A. do not correspond to current production of goods and services

B. are included in personal income

C. are paid in cash

D. are paid to foreigners

Answer: Option A

Solution (By JKSSB Mock Tests)

Transfer payments are one-sided payments with no corresponding production of goods or services.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'International Court of Justice' is located in:

A. The Hague

B. Geneva

C. Vienna

D. New York

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Correct Answer: Option A

Explanation:
ICJ is located in The Hague.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on government fees such as passport and visa is:

A. exempt

B. 0%

C. 18%

D. 5%

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Correct Answer: Option A

Explanation:
Government fees like passport and visa are exempt from GST.

This question belongs to: Economy GK Economy Set 1

Question #3

The concept of 'Natural Monopoly' arises when:

A. A single firm can supply the entire market at lower cost than two or more firms because of large fixed costs and declining average costs

B. Many firms can produce at the same minimum cost

C. The market is perfectly competitive

D. There are no economies of scale

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Correct Answer: Option A

Explanation:
A natural monopoly exists when subadditive costs (typically due to large fixed costs and declining average costs) make it more efficient for a single firm to serve the entire market.

This question belongs to: Economy GK Economy Set 1

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