Welfare Economics

The question involves matching items from List-I with those from List-II based on economic concepts.

Now, let's match correctly:

• (A) Non-monetary exchanges: These typically include the services of housewives which are not compensated with money, associated with (I).
• (B) Old age pensions: This is a form of transfer income as they are income received without a corresponding good or service exchanged, linked to (III).
• (C) Dividends received from investment in shares: Usually considered transfer income because it involves income without a good produced currently, so it matches (III).
• (D) Profits earned by a foreign bank in India: These are typically part of the income generated within the country's boundaries and thus are part of domestic income, aligning with (IV).

Therefore, the correct match is: (A)-(1), (B)-(3), (C)-(3), (D)-(4).