Question : Which of the following is a transfer payment? (a) Unemployment allowances (b) Scholarships (c) Retirement pension
Option 1: Only (a)
Option 2: All of the above
Option 3: Only (a) and (b)
Option 4: Only (c)
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Correct Answer: All of the above
Solution : The correct option is All of the above .
Transfer payments are typically made to redistribute income, provide assistance, or support specific groups in the population.
Unemployment allowances involve providing financial assistance to unemployed individuals, and they don't involve a direct exchange of goods or services.
The scholarship is need-based and provided as financial aid without an expectation of direct compensation or exchange of services; therefore, it can be considered a transfer payment.
Retirement pensions are payments made to individuals based on their past contributions or services during their working years.
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