Home » Economics » Economics miscellaneous » Question

Economics miscellaneous

  1. Transfer payments include :
    1. Gifts received from a friend
    2. rent free accommodation by the employer
    3. net factor income from abroad
    4. Employee's contribution to social security
Correct Option: D

A transfer payment is a one- way payment of money for which no money, good, or service is received in exchange. Governments use such payments as means of income redistribution by giving out money under social welfare programs such as social security, old age or disability pensions, student grants, unemployment compensation, etc. Examples of certain transfer payments include welfare (financial aid), social security, and government making subsidies for certain businesses



Your comments will be displayed only after manual approval.