Identify and Explain the following concepts
1) Vrinda receives monthly pension of Rs.5,000/- from the State Government.
Ans: Identified Concept : Transfer of Income
Explanation of concept : If the Expenditure incurred by another person/organisation is received by an individual in the form of income without any form of productive work, then such income is called as ‘Transfer Income’.
2) Viru kept aside 100 kgs. out of 500 kgs. of wheat produced in his farm for his family.
Ans: Identified Concept : Product for self consumption
Explanation of Concept: The Product for self consumption is the part of the product that is set aside to meet the needs of oneself and one’s family.
3) Sheetal purchased wheat flour for her bakery from the flour mill.
Ans: Identified Concept : Private investment Expenditure.
Explanation of Concept: Expenditure incurred by an entrepreneur or a private entity on raw materials, machinery, etc for the manufacture of various goods and services is called private investment expenditure.
4) Shobha collected data regarding the money value of all final goods and services produced in the country for the financial year 2018-2019.
Ans: Identification of Concept : Measure of National Income by product method.
Explanation of Concept: Measurement of national income by summing the economic values of all final goods and services produced in a particular financial year is a measure of national income by product method.
5) Rajendra has a total stock of 500 gel pens in his shop which includes the 200 gel pens produced in the previous financial year.
Ans: Identified concept : Inventories.
Explanation of concept : Inventories refer to the stock of raw materials, medium goods, semi-finished goods and final goods in the current financial year and in the previous financial year available to the producer.