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

Short-run costs — practice question

Which statement gives the best description of a transfer payment?

  • AIt is a loan from the government to help firms.
  • BIt is a payment to individuals not linked to economic activity.
  • CIt is the redistribution of income from government to individuals for work done.
  • DIt is the redistribution of income from households to firms for goods purchased.

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