Which of the following is an example of a transfer payment by the government?
A)The government provides unemployment benefits to its citizens
B)The local government invests in building a community center.
C)The government raises funds in order to build bridges and roads.
D)The government provides healthcare to its citizens at a subsidized price.
E)The government provides concessional rates to senior citizens who use public transport.

Question

Quizplus · Accepted Answer

A transfer payment is a payment made by the government to individuals or communities as a form of assistance or subsidy. Unemployment benefits fall under this category as they are payments made to individuals who are unemployed and seeking employment. B, C, D, and E relate to government expenditures but are not examples of transfer payments as they involve the government investing in infrastructure, providing services, or providing subsidies for certain groups.

Which of the Following Is an Example of a Transfer