A Distinguishing Characteristic of Public Transfer Payments Is That

question 36

Multiple Choice

A distinguishing characteristic of public transfer payments is that:

• A)they are used to subsidize the major transportation carriers to reduce transportation costs.
• B)they are counted as part of government purchases in the calculation of the gross domestic product.
• C)there is a tax on the amount of the subsidy above a certain income level.
• D)the recipients make no contribution to current production in return for them.

---

Definitions:

Monthly Payment

An amount of money that is regularly paid each month, often as part of a larger financial commitment or loan.

Car

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.

Annuity Payments

Regular payments made from an investment that was designed to provide an income over a period of time.

RRSP

Registered Retirement Savings Plan, a Canadian government-approved program to help residents save for retirement.