Which of the Following Represents a Transfer Payment

question 337

Multiple Choice

Which of the following represents a transfer payment?

• A) You transfer $1,000 from your bank account to a mutual fund.
• B) The government sends your grandfather his Social Security check.
• C) The bank transfers $10 in quarterly interest to your savings account.
• D) Your employer automatically transfers $100 each month from your wages to a non-taxable medical spending account.

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Definitions:

Socially Efficient

A situation in which resources are allocated in a way that maximizes the welfare of society as a whole.

Price Discriminating

A pricing strategy that involves charging different prices for the same product or service to different customers, based on what the seller believes each customer can afford or is willing to pay.

Large Quantity

Refers to a significantly high volume of goods or products, often associated with bulk buying or production.

Monopoly

A monopoly exists when a single company or entity has exclusive control over a particular market or product, allowing it to set prices without competition.