An example of a government transfer is a(n):
A) expenditure on an interstate highway.
B) bequest from a deceased relative.
C) Social Security payment.
D) salary for a member of the armed forces.

Question

Quizplus · Accepted Answer

A government transfer is a payment made by the government to an individual or household for which no goods or services are exchanged. Social Security payments are an example of a government transfer. Expenditures on highways and salaries for members of the armed forces are payments made in exchange for goods or services, while a bequest is a transfer of assets from one individual to another and not from the government.

An Example of a Government Transfer Is A(n)