A transfer payment is a sum of money
a. spent by government for new goods and services.
b. shifted between members of a household.
c. given by government without a good or service in exchange.
d. moved between companies for goods and services.
e. required to pay taxes.
c
You might also like to view...
If a $50 subsidy is legally (statutorily) granted to the sellers of weed eaters and as a result the price of weed eaters to consumers falls by $30, the actual benefit of the subsidy
a. goes completely to buyers of weed eaters. b. goes completely to sellers of weed eaters. c. is $30 to buyers and $20 to sellers. d. is $20 to buyers and $30 to sellers.
Other things the same, the effects of an increase in transfer payments on the government's budget deficit will lead to
a. greater investment. b. a higher interest rate. c. higher public saving. d. All of the above are correct.
A decrease in net exports will cause a(n):
A. increase in aggregate demand. B. decrease in aggregate supply. C. increase in aggregate supply. D. decrease in aggregate demand.
The net cost to society from prohibiting the operation of a competitive market in equilibrium is
A. a deadweight loss. B. lost producer surplus only. C. lost consumer surplus only. D. lost producer profits only.