Which of the following is a transfer payment?
A) The federal government's budget deficit
B) Unemployment compensation payments
C) Military spending
D) Wages of government employees
E) The excise tax on gasoline.

Question

Quizplus · Accepted Answer

Transfer payments are payments made by the government to individuals or other levels of government that do not involve the production of a good or service. Unemployment compensation payments fall under this category as they involve direct payments from the government to individuals who are unemployed.

Which of the Following Is a Transfer Payment