An example of a transfer payment is:
A) a federal income tax refund.
B) a Social Security payment.
C) the $3 donation to the Wildlife Fund you make on your tax return.
D) the taxes corporations pay on profit.

Question

Quizplus · Accepted Answer

A transfer payment is a payment made by the government to an individual or group without any goods or services being exchanged, and B is an example of this as Social Security payments are made to eligible individuals without any exchange taking place. A is not a transfer payment as it is a refund of an overpayment of taxes, which required an exchange of money in the first place. C is not a transfer payment as it is a voluntary donation made by an individual, not a payment made by the government. D is not a transfer payment as it is a payment made by corporations to the government, not the other way around.

An Example of a Transfer Payment Is