A Transfer Payment Is a Payment Made by

question 26

Multiple Choice

A transfer payment is a payment made by

• A)consumers, but not in exchange for a tangible product.
• B)firms, but not in exchange for capital equipment.
• C)foreigners, but not in exchange for a domestically produced good or service.
• D)government, but not in exchange for a currently produced good or service.

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Definitions:

Public Policy Reasons

Justifications or rationales based on the public good or societal interests that guide or influence legislative, governmental, or organizational decisions.

Disaffirm

The act of rejecting or renouncing a contract or agreement, particularly by a minor who is not legally bound by contracts.

Life Insurance

A contract between an insurer and a policyholder where the insurer pledges payment of a death benefit to named beneficiaries upon the death of the insured.

Health Insurance

A type of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.