Transfer payments are:
A) spending that transfers resources from the government to individuals.
B) payments that individuals make to the government.
C) when individuals transfer stock ownership in lieu of payment with cash or other liquid assets.
D) when individuals transfer cash for payments of a good or service.

Question

Quizplus · Accepted Answer

Transfer payments are payments made by the government that do not result in the production of goods or services. Instead, they transfer resources from one group (i.e. taxpayers) to another group (i.e. elderly persons receiving social security). This is typically done to address income inequality, support specific groups, or stimulate the economy. Therefore, transfer payments are spending that transfers resources from the government to individuals.

Transfer Payments Are