Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

Explain why pensions paid to retired citizens count as a transfer payment.

  • ARetired citizens pay no tax on their pensions.
  • BRetired citizens produce no output for their pensions.
  • CRetired citizens save some of their pensions.
  • DRetired citizens spend all of their pensions.

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