What Is a Transfer Payment

question 203

Multiple Choice

What is a transfer payment?

• A)The payment made to convert one currency into another.
• B)The transmission of money from one country to another.
• C)The transfer of taxes from the private sector to the government.
• D)A one-way transaction in which payment is made but no good or service flows back in return.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Consumer Purchases

Transactions in which individuals buy goods and services for personal use, reflecting consumer spending habits and economic health.

Elasticity

A measure in economics that shows how the quantity demanded or supplied of a good changes in response to a change in price.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, as opposed to normal goods, where demand increases with income.