Which of the following is a private transfer payment?
A) unemployment beneﬁts received by newly laid-off workers
B) the sale of used clothing at a thrift store
C) the Social Security beneﬁts paid to a retired worker
D) a check for $250 sent by a parent to a daughter at college

Question

Quizplus · Accepted Answer

A private transfer payment is a payment made from one individual to another, without any exchange of a good or service. Option A is a public transfer payment since it is funded by the government. Option B involves the exchange of a good for money. Option C is also a public transfer payment as it is funded by the government. Option D involves a parent sending money to their daughter, which constitutes a private transfer payment.

Which of the Following Is a Private Transfer Payment