Which of the Following Is an Example of a Transfer

question 195

Multiple Choice

Which of the following is an example of a transfer payment?

• A)Your grandma buys you a new watch for graduation.
• B)A military contractor pays to move its employee from the East Coast to the West Coast.
• C)The county office gives its low-income residents food stamps.
• D)The government floats bonds for a new highway.

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Definitions:

Produce

Produce generally refers to agricultural products, especially fresh fruits and vegetables, harvested for human consumption.

Lower Cost

A situation or strategy in which the production or offering of goods and services is achieved with minimal expense.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.