Question : Which of the following is an example of a non-market transaction?
Option 1: Sale of a car by a dealership
Option 2: Purchase of groceries by a household
Option 3: Payment of rent by a tenant
Option 4: Transfer payment by the government
Correct Answer: Transfer payment by the government
Solution : The correct answer is (d) Transfer payment by the government.
A non-market transaction refers to an economic activity that does not involve the exchange of goods or services for money or any other form of payment. It typically involves transfers of resources or income without any corresponding market transaction.
Among the options provided, a transfer payment by the government (option d) is an example of a non-market transaction. Transfer payments are payments made by the government to individuals, households, or other entities without receiving any goods or services in return. Examples of transfer payments include social welfare benefits, pensions, grants, subsidies, and scholarships.
Question : Which of the following is an example of a capital expenditure?
Option 1: Purchase of groceries by a household
Option 2: Payment of salaries by a company
Option 3: Investment in new machinery by a factory
Option 4: Payment of rent by a tenant
Question : Which of the following is an example of a transfer payment?
Option 1: Wages earned by a factory worker
Option 2: Dividends received by a shareholder
Option 3: Pension payment to a retired government employee
Option 4: Rent paid by a tenant
Question : Which of the following is an example of a factor income?
Option 1: Dividends received by a shareholder
Option 2: Rent paid by a tenant
Option 3: Taxes paid by a business
Option 4: Interest earned on a savings account
Question : It refers to the market for sale in purchase of previously issued securities.Which of the following market is highlighted in the given statement?
Option 1: Money market
Option 2: Primary market
Option 3: Secondary market
Option 4: None of the above
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