Which of the Following Government Outlays Would Be Classified as a Transfer

question 28

Multiple Choice

Which of the following government outlays would be classified as a transfer payment?

• A) payments of veterans benefits under the GI bill
• B) interest on the federal debt
• C) subsidies to gold-mining firms
• D) All of these.

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Definitions:

Pervasive Costs

Costs that are widespread and difficult to directly relate to any specific product or segment of a business.

Factory Overhead

Indirect costs associated with manufacturing, including expenses related to operating the factory like utilities, maintenance, and salaries of support staff.

Manufacturing Cost Category

Classification of costs related to the production process, typically including direct materials, direct labor, and manufacturing overhead.

Cost of Goods Sold

Expenses directly incurred from producing goods a company sells, such as costs for materials and labor.