Government payments to individuals for which no good or service is exchanged are:

A) spending.
B) purchases.
C) spending on goods and services.
D) transfer payments.

Question

Government payments to individuals for which no good or service is exchanged are:A) spending.B) purchases.C) spending on goods and services.D) transfer payments.

Celinda Guerra · Accepted Answer

Final Answer : D, Explanation :  Transfer payments are government payments to individuals or groups for which no good or service is exchanged, such as social security, welfare benefits, and unemployment benefits. This type of payment does not result in the acquisition of goods or services by the government. A is incorrect because not all government payments are considered spending. B is incorrect because a purchase involves the acquisition of goods or services in exchange for payment, which is not the case for transfer payments. C is incorrect because spending on goods and services implies the acquisition of a tangible or intangible asset, whereas transfer payments do not result in such an acquisition.

Government payments to individuals for which no good or service is exchanged are:

A) spending.
B) purchases.
C) spending on goods and services.
D) transfer payments.

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Learning Objectives

Learning Objectives

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