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A distinguishing characteristic of public transfer payments is that:(d) the recipients make no contribution to current production in return for them.
A transfer payment (also known as a government transfer or simply transfer) is a redistribution of income and wealth by the government making a payment without receiving goods or services in return. Because they do not directly absorb resources or generate output, these payments are considered non-exhaustive. Welfare, financial aid, social security, and government subsidies for specific businesses are all examples of transfer payments.
The three major types of transfer payment at the federal level are social insurance programs, welfare, and business subsidies. Social insurance programs provide benefits to people regardless of their income level.
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Full Question :A distinguishing characteristic of public transfer payments is that:
a) they are used to subsidize the major transportation carriers to reduce transportation costs.
b) they are counted as part of government purchases in the calculation of the gross domestic product.
c) there is a tax on the amount of the subsidy above a certain income level.
d) the recipients make no contribution to current production in return for them.
