Which of the following would be considered a transfer payment by the government?

Question

Which of the following would be considered a transfer payment by the government? Remember that transfer payments are given with no current productive activity by the recipient. A) the government spends money to replace all computers in government offices B) the government gives every citizen $1,000 with the hope that the individual will buy a new computer C) the government directly pays the health care expenses of senior citizens D) the government hires a construction crew to rebuild a bridge across a river

Explanation / Answer

Government transafer payment is the redistribution of income or resources by the government from one economic agent to another that does not produce any direct output in the economy. Retirement benefit, unemployment benefits are examples of governemnt transfer payment.

Therefore, the correct option is

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.