A transfer payment is a payment by the government to an individual
A) for an investment good.
B) for which the government does not receive a good or service in return.
C) for a debt owed.
D) for a service.
E) for a consumption good.
B
You might also like to view...
Homer's Holesome Donuts has determined that its profit-maximizing quantity is 10,000 donuts per year. Homer's earns $12,000 in revenue from the sale of those donuts. Homer's has two costs
First he pays $16,000 in annual rental payments for its five-year lease on its store. Second Homer incurs an additional cost of $5,000 for ingredients. Should Homer's shut down in the short run? A) Yes, because he is incurring an economic loss. B) Yes, because he cannot cover all of his fixed costs. C) No, because is making positive economic profit. D) No, because he can cover all of his variable costs.
To promote an economic expansion and an exit from the deflationary environment that the Japanese had been experiencing for the past fifteen years, the "Abenomics" aims at
A) increasing inflation target. B) increasing inflation expectations. C) purchasing long-term bonds. D) all of the above. E) none of the above.
How is the production of public goods funded?
What monetary policy is recommended by Milton Friedman and other monetarists? Why?
What will be an ideal response?