Correct Answer: A pension paid to a retiree

Solution : The correct answer is b) A pension paid to a retiree.

A transfer payment refers to a payment made without the recipient providing goods or services in exchange. It is a transfer of income from one party to another, often for social welfare or redistribution purposes. Transfer payments are typically made by the government or other organizations to individuals or households.

A pension paid to a retiree is an example of a transfer payment. It is a regular payment made to a retired individual as a form of income support or social security.