Question : Which of the following is an example of a transfer payment?
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
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.
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
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
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