Question : Which of the following is an example of a transfer payment?
Option 1: A payment for a good or service
Option 2: A salary paid to an employee
Option 3: A pension paid to a retiree
Option 4: A fee paid to a consultant
Correct Answer: A pension paid to a retiree
Solution : The correct answer is c) A pension paid to a retiree.
A transfer payment refers to a payment made by the government or an organization to an individual or entity without any corresponding production of goods or services. It is typically a redistribution of income or wealth to support individuals or groups in specific circumstances. The payment is not made in exchange for a good or service.
A pension paid to a retiree is an example of a transfer payment. It is a regular payment made to support individuals who have retired from employment.
Related Questions
Trending Articles/News
