National Income — Economics STD 12 Commerce / Arts — Question
Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsEconomicsNational Income4 Marks
Question
Old age pension is transfer income.
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Answer
Yes, I agree with this statement.
Transfer Income are income received by individuals without contributing anything to the current years production of goods and services. It is a flow of money without a reverse flow of goods or services.
Old age pension is received by a person after he retires from work.
To get this income tlje person actually does not contribute anything to production of goods and services during that period.
Old age pension is income transferred from the government.
So it is a government expenditure.
Transfer income are included in personal income. But they are not included in National Income because such payments do not result in any addition to the total production of goods.
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