Which of the Following Is a Private Transfer Payment

question 124

Multiple Choice

Which of the following is a private transfer payment?

• A) Unemployment benefits received by newly laid-off workers
• B) The sale of used clothing at a thrift store
• C) The Social Security benefits paid to a retired worker
• D) A check for $250 sent by a parent to a daughter at college

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Definitions:

Pre-tax Cost

The expense or cost associated with an investment or project before any taxes are deducted.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, indicating the percentage of tax applied to your next dollar of taxable income.