An example of a transfer payment is:
A)a check to a hospital for payment of a bill owed by a senior citizen covered by Medicare.
B)a mail carrier's wages.
C)payment to Boeing Aircraft for an intercontinental bomber.
D)the lunch provided for a cleaning person.
E)none of the above.

Question

Quizplus · Accepted Answer

A transfer payment is a payment made by the government to an individual or group for which no goods or services are exchanged. Option A fits this definition as the government makes a payment to a hospital on behalf of a senior citizen covered by Medicare. The other options do not fit the definition of a transfer payment.

An Example of a Transfer Payment Is