Question

A transfer payment is A. a form of government spending that is not made in exchange for a currently produced good or service. B. the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure. C. a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location. D. a payment that is automatically transferred from your bank account to pay a bill or some other obligation.

Answer 1

Answer: Option (A) is correct.

Explanation:

A transfer payment is a payment that is made to a person for no service, goods or any item in exchange.

There are certain examples of transfer payment such as old age pension, unemployment compensation, grants, disability pensions, etc. These are the payments generally made by the government to help the needy ones.