Government transfer payments
A)are subtracted from national income to obtain disposable income.
B)can be considered as negative taxes.
C)intervene between national product and disposable income in the same way as taxes.
D)are counted the same as taxes in computing national income.

Question

Quizplus · Accepted Answer

Government transfer payments can be considered as negative taxes, as they provide individuals with income without requiring any work or contribution, similar to how tax deductions decrease an individual's tax burden. Therefore, they are not subtracted from national income to obtain disposable income but rather are already accounted for as a part of disposable income.

Government Transfer Payments