Which of the following is an example of a transfer payment?
A) wages and salaries paid to the employees of the Internal Revenue Service
B) purchase of automobiles by a local police department
C) agriculture subsidies paid to farmers
D) salaries paid to the college professors of state-operated universities

Question

Quizplus · Accepted Answer

Transfer payments are payments made by the government to individuals without any goods or services being received in return. Agriculture subsidies paid to farmers are an example of such payments.

Which of the Following Is an Example of a Transfer