Multiple choice

Transfer payments refer to payment which are made

  1. without any exchange of goods and services

  2. to workers on transfer from one job to another

  3. as compensation to employees

  4. none of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Transfer payments are one-way payments where no good or service is exchanged in return. Examples include subsidies, welfare benefits, and grants. Options B and C incorrectly suggest transfer payments are related to job changes or employee compensation, which are exchanges for labor services.