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A-LevelEconomicsNational Income and ExpenditureFeb/Mar 2019Paper 1 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

The correct answer is C: The payment is made without the production of goods and services taking place.

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests National Income and Expenditure in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2019 examination, Paper 1 Variant 2.

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