Social Security benefits and expenditures on Medicare and Medicaid are classified as
A) debt interest.
B) production of goods and services.
C) purchases of goods and services.
D) transfer payments.

Question

Quizplus · Accepted Answer

Social Security benefits and expenditures on Medicare and Medicaid are considered transfer payments, which are payments made by the government to individuals or households for which no good or service is exchanged. These payments transfer income from one group to another, without affecting total production or consumption in the economy.

Social Security Benefits and Expenditures on Medicare and Medicaid Are