Which of the following is an example of a transfer payment?
A. Pension paid to retired employees
B. Payment for purchase of goods
C. Salary paid to government employees
D. Interest paid on government borrowings
Answer: Option A
Solution (By JKSSB Mock Tests)
Transfer payments are unilateral payments for which no goods or services are received in return, such as pensions, scholarships and unemployment allowances. Interest on borrowings is also a transfer, but pension is a classic example.
Explanation:
The main types of unemployment are frictional, structural, cyclical and seasonal. 'Nominal unemployment' is not a standard classification.
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