Q. Consider the following statements regarding transfer incomes:

1. Transfer incomes are payments made without exchange of goods or services.
2. They are included in national income accounting under a separate head.
3. Pensions, scholarships, and subsidies are examples of transfer incomes.

Which of the above statements is/are correct?
Answer: Only 1 & 3
Notes: Transfer incomes are payments received without rendering goods or services, such as pensions, scholarships, and subsidies. These are not included in national income since they do not arise from productive activity; hence, statement 2 is incorrect. Statements 1 and 3 are correct as they accurately describe the definition and examples of transfer incomes.