ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A person loses their job and is unemployed for a year
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A 50 year old retires early after a successful career in investment banking
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A person quits their job to pursue a career in economics
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Parents decide to move their kids from one school to another
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Detailed explanation-1: -The most well-known form of transfer payment is likely Social Security payments, whether for retirement or disability. These are considered transfer payments even though most recipients have paid into the system during their working lives. Similarly, unemployment payments are also considered transfer payments.
Detailed explanation-2: -Examples of transfer payments include welfare, financial aid, social security, and government subsidies for certain businesses.
Detailed explanation-3: -Hence, retirement pension is an example of a transfer payment.
Detailed explanation-4: -Wages are a Transfer payment because the firm transfers payments to the employees. The above statement is false. The transfer payment (TP) is the redistribution of money. The government redistributes the money or transfers the income to the people who need it.
Detailed explanation-5: -It is a one-way payment to a person or organization which has given or exchanged no goods or services for it. Examples: government payments to individuals through social programs such as welfare, student grants, subsidy, Social Security Payments, Old age Pensions, etc. 23-Jan-2023