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Answer: Payments made to individuals for welfare purposes, such as social security benefits.
**Explanation:** Transfer payments are primarily welfare payments distributed through social security systems. These include state pensions, housing benefits, tax credits, income support for low-income families, child benefits, and unemployment benefits. - **Option A** is correct because it accurately describes transfer payments as welfare-related disbursements. - **Option B** is incorrect because it refers to capital expenditures, such as infrastructure projects, which are distinct from transfer payments. - **Option C** is incorrect because it describes current government spending on recurring goods and services, which does not fall under the category of transfer payments.
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With respect to fiscal policy, transfer payments are best described as:
A
Payments made to individuals for welfare purposes, such as social security benefits.
B
Expenditures on public infrastructure projects like roads and hospitals.
C
Recurring government outlays on goods and services such as healthcare and education.