Transfer payments are included in
A) NI.
B) PI.
C) GDP.
D) NDP.

Question

Quizplus · Accepted Answer

Transfer payments are included in Personal Income (PI) because they are payments received by individuals for which no current goods or services are exchanged, such as Social Security benefits, unemployment benefits, and other government welfare payments. They are not included in measures of production such as GDP (Gross Domestic Product) or NDP (Net Domestic Product), nor are they included in National Income (NI) since they do not arise from the production of goods and services.

Transfer Payments Are Included in