An example of a government expenditure that is a transfer payment is
A)employment-insurance (EI)payments.
B)construction costs of a new government-owned airport.
C)salaries of welfare case workers.
D)education payments.
E)payments made to the Canadian International Development Agency (CIDA).

Question

Quizplus · Accepted Answer

Employment-insurance (EI) payments are an example of a transfer payment since they are payments made from the government to individuals who have lost their job and meet certain eligibility criteria. The payment is not related to any specific goods or services but is intended for income redistribution purposes.

An Example of a Government Expenditure That Is a Transfer