ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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pays for trade with other countries
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buys something that get nothing in exchange for
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pays only for Medicare
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pays only for roads
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Detailed explanation-1: -A transfer payment is a one-way payment to a person or organization which has given or exchanged no goods or services for it. This contrasts with a simple “payment, ” which in economics refers to a transfer of money in exchange for a product or service.
Detailed explanation-2: -A transfer payment is the provision of aid or money to an individual who is not required to provide anything in exchange for the payment. Social Security and welfare benefits are examples of transfer payments.
Detailed explanation-3: -Hence, retirement pension is an example of a transfer payment.
Detailed explanation-4: -Transfer payments are the payments that flow from the government to the households. The given statement is TRUE. The transfer payments are the redistribution of income from the government to the individuals.