Which of the following represents the best example of a transfer payment?
A)the paycheck that Freeda brings home from her job as a computer programer
B)the interest that Hans earns from the savings account he has with USA Bank
C)the revenue that Janet has left over after she pays all the expenses associated with running her software development business
D)the check that Hunter receives each month for leasing his land to the natural gas company that is drilling on his land
E)the check that Trisha gets each month from the Social Security Administration

Question

Quizplus · Accepted Answer

A transfer payment is a payment made by a government or organization to an individual or household for which no good or service is exchanged. Social Security benefits are an example of a transfer payment, as individuals receive payments without providing any goods or services in return.

Which of the Following Represents the Best Example of a Transfer