Spending on programs that result in transfer payments that depend on the economic state of individuals and businesses is called_________ .
A) business subsidies
B) welfare
C) needs-tested spending
D) transfer spending

Question

Quizplus · Accepted Answer

Needs-tested spending refers to programs that provide transfer payments (such as food stamps or Medicaid) to individuals and families who meet certain income or asset requirements. The amount of spending on these programs can fluctuate depending on economic conditions and the number of people who qualify for assistance. Business subsidies may also be affected by economic conditions, but they are not necessarily transfer payments and may be given regardless of a company's profitability. Welfare is a general term that can refer to a range of social welfare programs, including needs-tested spending but also other types of assistance such as unemployment insurance or public housing. Transfer spending is a general term that can refer to any type of government spending that involves the transfer of funds from one group or sector of the economy to another.

Spending on Programs That Result in Transfer Payments That Depend