A distinguishing characteristic of public transfer payments is that:
A) They include wages to government workers
B) They are counted as part of government purchases in the calculation of the gross domestic product
C) They include the cost of maintaining public parks
D) They involve no contribution to current production in return

Question

Quizplus · Accepted Answer

Public transfer payments involve government payments to individuals that do not result in any contribution to current production in return. Examples of public transfer payments include Social Security benefits, unemployment compensation, and welfare payments. Unlike government purchases of goods and services, transfer payments are not counted as part of the gross domestic product because they do not represent current production.

A Distinguishing Characteristic of Public Transfer Payments Is That