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313

Q:

A ‘Transfer Income’ is as –

  • 1
    Income which is not produced by as production process.
  • 2
    Income taken away from one person given over to another.
  • 3
    Unearned Income
  • 4
    Earned Income
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Answer : 1. "Income which is not produced by as production process."
Explanation :

Transfer paymentOne-way payment of money for which no money, good, or  service is received in exchange. Governments use such payments as means of income  redistribution by giving out money under social welfare  programs such as social security, old age or disability pensions,  student grants, unemployment compensation, etc. Subsidies  paid to exporters, farmers, manufacturers, however, are not  considered transfer payments. Transfer payments are excluded  in computing gross national product.

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