Asked by Shanelle States on May 18, 2024
Verified
Transfer payments are paid mainly to
A) individuals.
B) business firms.
C) foreign countries.
D) government bondholders.
Transfer Payments
Payments made by governments to individuals or other sectors in the economy, typically without any goods or services being received in return.
Individuals
Refers to single human beings as distinct from groups, typically considered in the context of social or economic policies.
Government Bondholders
Individuals or institutions that hold debt securities issued by the government.
- Understand the concept of transfer payments and its significance in the economy.
Verified Answer
PQ
Paige QueenMay 20, 2024
Final Answer :
A
Explanation :
Transfer payments are payments made by the government to individuals or groups for which no goods or services are exchanged. These payments do not reflect any production or exchange of goods or services; they are simply transfers of money from one individual or group to another. Examples of transfer payments include welfare, Social Security, and unemployment benefits, which are paid to individuals to support their living expenses. Therefore, the best choice is individuals (A).
Learning Objectives
- Understand the concept of transfer payments and its significance in the economy.