In Macroeconomic Analysis, a Transfer Payment Is Considered a

question 150

Multiple Choice

In macroeconomic analysis, a transfer payment is considered a

• A)positive tax.
• B)fixed tax.
• C)negative tax.
• D)variable tax.

---

Definitions:

Supply and Demand

Refers to the economic model that determines the price of goods and services based on sellers' supply and buyers' demand.

Excess Demand

A market condition where the quantity demanded of a good or service exceeds its quantity supplied at a given price.

Equilibrium Price

The cost in the market at which the supply and demand for goods are balanced.

Invisible Hand Principle

An economic theory proposed by Adam Smith, suggesting that individuals' pursuit of self-interest in free markets leads to economic prosperity and efficiency as if guided by an invisible hand.