Which of the Following Transactions Is a Transfer Payment

question 84

Multiple Choice

Which of the following transactions is a transfer payment?

• A)The government pays an employee by making a direct transfer to the employee's bank account.
• B)An army officer, paid by the government, transfers part of the money he receives to the government to pay his taxes.
• C)A senior citizen receives a Social Security payment.
• D)All of these are transfer payments.

Comprehend the relationship between input prices and production choices.

Recognize different types of production functions, including fixed-proportion and variable-proportion systems.

Interpret the effects of input changes on production output levels within different production systems.

Distinguish between increasing, constant, and decreasing returns to scale in production.

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Definitions:

Equilibrium

A state of balance in a system where supply equals demand, and there is no external force prompting change.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Producer Surplus

The difference between what producers are willing and able to sell a good for and the actual price they receive, representing the benefit to sellers.

Opportunity Cost

The expense incurred by not choosing the second-best option in any decision-making process.