Which of the Following Is an Example of a 'Transfer

question 105

Multiple Choice

Which of the following is an example of a 'transfer payment'?

• A)A teacher's pay being transferred electronically from the government to the teacher.
• B)An unemployment benefit.
• C)Interest repayments on a loan.
• D)The purchase of a new government office block.

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Definitions:

Very Inelastic

Describes a situation where demand or supply hardly changes in response to changes in price.

Tax

A required financial imposition or alternative type of duty enforced on a taxpayer by a governing body to support government funding and assorted public expenses.

Tax

An obligatory monetary contribution or another kind of charge levied on a taxpayer by a government authority for the purpose of funding government operations and diverse public costs.

Higher Prices

A situation in which the cost of goods or services increases, often due to factors such as increased demand or higher production costs.