Explain the difference between government subsidies and transfer payments. give an example of a transfer payment

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18-04-2021
Social Studies

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Explain the difference between government subsidies and transfer payments. give an example of a transfer payment

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khimoramontague khimoramontague · Answer 1 · 2021-04-28T19:29:40+02:00

The Sample Response is:

Subsidies are government financial aid given to businesses meant to help lower their costs or stimulate the economy. Transfer payments are government payments in which the government takes money from one group and gives it to another. Medicare, Social Security, and various welfare programs are all examples of government transfer programs.

My summarized answer is:

Subsidy is a government financial aid meant to stimulate the economy or promote certain kinds of production by lowering business costs. Transfer payments are government payments through which money is taken from one group to another. Financial aid is an example of a transfer payment.

kanikabajaj294 kanikabajaj294 · Answer 2 · 2022-06-04T08:32:20+02:00

Subsidy refers to the transfer of money from the government to a business entity and transfer payments are the payments made by individuals to the federal government.

What is government?

The government refers to the group of people governing an organized community.

Government subsidies refer to the form of financial aid given to an economic sector for promoting economic and social policy and transfer payment refers to the payments made to individuals by a variety of social programs.

Welfare, social security, financial aid, etc, are examples of transfer payments.

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