Asked by
Isabel Piccinini
on Nov 16, 2024
Verified
A transfer payment is a payment made by
A) consumers, but not in exchange for a tangible product.
B) firms, but not in exchange for capital equipment.
C) foreigners, but not in exchange for a domestically produced good or service.
D) government, but not in exchange for a currently produced good or service.
Transfer Payment
Payments made by the government to individuals for which no good or service is provided in return, such as welfare benefits.
Capital Equipment
Assets used by businesses to produce goods and services, such as machinery, tools, and buildings.
- Comprehend and distinguish between government expenditures, transfer payments, and subsidies within the framework of Gross Domestic Product (GDP).
Verified Answer
MP
Learning Objectives
- Comprehend and distinguish between government expenditures, transfer payments, and subsidies within the framework of Gross Domestic Product (GDP).
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