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.
Option 1: A salary paid to an employee
Option 2: A pension paid to a retiree
Option 3: A fee paid to a consultant
Option 4: A payment for a good or service
Option 1: Wages earned by a factory worker
Option 2: Dividends received by a shareholder
Option 3: Pension payment to a retired government employee
Option 4: Rent paid by a tenant
Question : Which of the following is an example of a capital transfer?
Option 1: A government grant to a research institution
Option 2: A payment for a good or service
Option 3: A tax on income
Option 4: A payment for a loan
Option 1: A government subsidy to a private company
Option 3: A tax on imports
Option 4: A gift from one person to another
Question : Which of the following is not an example of factor payment?
Option 1: Interest
Option 2: Wages
Option 3: Rent
Option 4: Pension
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile