An example of a transfer payment is
A) the President's salary.
B) unemployment insurance benefits.
C) a payment to a defense contractor.
D) court costs paid by the defendants in a law suit.

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A transfer payment is a payment made by a government to an individual or group without any goods or services being exchanged. Unemployment insurance benefits are a type of transfer payment because the government provides financial assistance to those who are unemployed without requiring any work or goods in exchange. Options A, C, and D are not transfer payments because they involve payments for goods or services provided.

An Example of a Transfer Payment Is