An Example of a Transfer Payment Is

question 58

Multiple Choice

An example of a transfer payment is:

• A)a federal income tax refund.
• B)a social Security payment.
• C)the $3 donation to the Wildlife Fund you make on your tax return.
• D)All of these are examples of transfer payments.

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Definitions:

Implicit Costs

Costs that represent the opportunity costs of using resources that the firm already owns, not involving direct monetary payment.

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting an activity or business operation.

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs, indicating the financial gain in an economic activity.

Accountant

A professional who is responsible for keeping and interpreting financial records, ensuring accuracy and compliance with laws.