Transfer payments are considered to be:
A) earned income.
B) immoral in the United States.
C) income for which no exchange of goods or service is necessary.
D) a minor percentage of GDP (usually less than 1 percent).

Question

Quizplus · Accepted Answer

Transfer payments are income for which no exchange of goods or service is necessary. They are payments made by the government to individuals or groups without an expectation of receiving goods or services in return. Examples include social security payments, welfare payments, and unemployment benefits. They are not earned income, and while some may debate their morality, they are not universally seen as immoral. Transfer payments also make up a significant percentage of GDP, often accounting for more than 10% in many developed countries.

Transfer Payments Are Considered to Be