A-LevelEconomicsThe macroeconomy9708/12 · Feb/Mar 2019 · Q161 Mark
Money is paid by the government to an unemployed worker in the form of a benefit. Why is this called a transfer payment?
AThe payment is from taxes paid by employed workers.
BThe payment is made from government savings not current income.
CThe payment is made without the production of goods and services taking place.
DThe payment must be spent as directed by the government.
✓ Correct answer
C: The payment is made without the production of goods and services taking place.
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