An example of transfer payments in national income accounting is
ECONOMICS
WAEC 2022
An example of transfer payments in national income accounting is
- A. money transferred to another country
- B. transfer of funds from one bank to another
- C. unemployment allowance paid to the citizens
- D. the amount paid to a worker on transfer
Correct Answer: C. unemployment allowance paid to the citizens
Explanation
Transfer payment are payment of receipts not resulting from contribution to productive activities in the economy. They are mere transfers from one person to another, for example: pension, bursary, award, gift, unemployment benefit etc. When estimating or calculating national income, transfer payment are excluded
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *