Question

Transfer payments are a type of public expenditure that:

• A. Involves a direct exchange of goods or services for money.
• B. Funds government operations and public services directly.
• C. Represents a mandatory saving scheme for citizens.
• D. Involves a transfer of income without any reciprocal service.

Answer 1

Answer:

D. Involves a transfer of income without any reciprocal service.

• Transfer payments, such as pensions, unemployment benefits, and subsidies, are a flow of money from the government to individuals or other organizations without any goods or services being provided in return.