Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following statements about transfer payments is true?
A)Transfer payments are not included in total government expenditures.
B)Transfer payments involve the international remittance of funds.
C)Transfer payments refer to the transfer of money by the commercial banks to the people.
D)Transfer payments are made by the government to taxpayers.
E)Transfer payments are made when governments purchase goods and services.

Question

Quizplus · Accepted Answer

Transfer payments are payments made by the government to individuals, typically without any goods or services being received in return, such as social security benefits or unemployment compensation.

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth