Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth

question 3

Multiple Choice

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following statements about transfer payments is true?

• A)Transfer payments are not included in total government expenditures.
• B)Transfer payments involve the international remittance of funds.
• C)Transfer payments refer to the transfer of money by the commercial banks to the people.
• D)Transfer payments are made by the government to taxpayers.
• E)Transfer payments are made when governments purchase goods and services.

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Definitions:

Individual Insurance Plan

A health insurance policy purchased by an individual, as opposed to being provided by an employer.

Group Benefit

An advantage or favorable outcome obtained by a team or group, often in the context of workplace incentives or shared services.

Cash Balance Plan

Retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate.

Predetermined Rate

A fixed charge, wage, or value established in advance for transactions, services, or labor, often based on standard criteria or prior agreements.