Transfer payments are.a)Payments transferred from Central Government account to state Government accountb)Payments made to factors of production by the organizerc)Payments made for no return serviced)None of the aboveCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Transfer Payment means payment made from one entity to another where no goods and services are exchanged in return . Ex- Old age pension .

Answer

Transfer payments are those payments which are just gift or donation no actual work is done for that. for ex gift, donation, charity, old age pension.

Answer

Transfer payments are payments made for no return services. These payments are made by the government or an organization to individuals, households, or other entities without any expectation of receiving goods or services in return. Transfer payments are typically made to support or assist individuals or groups who are in need or to provide economic stimulus.

Transfer payments can take various forms, including social welfare benefits, subsidies, grants, pensions, scholarships, and unemployment benefits. These payments are usually made on a regular basis, such as monthly or quarterly, and are intended to provide financial assistance or support to the recipients.

The purpose of transfer payments is to redistribute income and wealth, promote social welfare, and reduce economic inequalities. These payments are often targeted towards specific groups or individuals who may be facing financial hardship or require assistance due to various circumstances, such as unemployment, disability, or old age.

Transfer payments can be made at different levels of government. In the case of a central government transferring payments to a state government, it is typically done to provide financial support for specific programs or initiatives at the state level. This can include funding for education, healthcare, infrastructure development, or social welfare programs.

Transfer payments can also be made by organizations to factors of production, such as labor or capital, as a form of compensation or reward. However, it is important to note that in the context of the given options, transfer payments specifically refer to payments made for no return services.

In summary, transfer payments are payments made for no return services. They are typically made by the government or an organization to individuals or groups without any expectation of receiving goods or services in return. These payments aim to provide financial assistance or support to those in need and promote social welfare.

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