If the Canadian government pays a retired economist at the Ministry of Finance $30 000 in retirement benefits in 2011,how is the payment treated?

Question

If the Canadian government pays a retired economist at the Ministry of Finance $30 000 in retirement benefits in 2011,how is the payment treated?

Quizplus · Accepted Answer

Retirement benefits paid to a retired economist are considered transfer payments as they are payments made without any production of goods or services. Transfer payments are not included in GDP calculations as they are not a result of any economic activity.

If the Canadian Government Pays a Retired Economist at the Ministry