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What is a transfer payment?

Updated: 4/28/2022
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14y ago

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In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income in the market system. These payments are considered to be nonexhaustive because they do not directly absorb resources or create output. Examples of certain transfer payments include welfare (financial aid), social security, and government subsidies for certain businesses (firms).

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14y ago
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Q: What is a transfer payment?
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