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Transfer Payment Definition – investopedia.com
https://www.investopedia.com/terms/t/transferpayment.asp
Key Takeaways A transfer payment is a payment of money for which there are no goods or services exchanged. Transfer payments commonly refer to efforts by local, state, and federal governments to redistribute money to those in… In the U.S., Social Security and unemployment insurance are common …
Transfer payment Definition & Meaning – Merriam-Webster
https://www.merriam-webster.com/dictionary/transfer%20payment
1 : a public expenditure made for a purpose (such as unemployment compensation) other than procuring goods or services —usually used in plural. 2 transfer payments plural : money (such as welfare payments) that is received by individuals and that is neither compensation for goods or services currently supplied nor income from investments.
FAQ transfer payments definition
What is a transfer payment in economics?
In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income and wealth by means of the government making a payment, without goods or services being received in return. These payments are considered to be non-exhaustive because they do not directly absorb resources or create output.
What is the meaning of transfer?
Jump to navigation Jump to search. In economics, a transfer payment (or government transfer or simply transfer) is a redistribution of income and wealth (payment) made without goods or services being received in return. These payments are considered to be non-exhaustive because they do not directly absorb resources or create output.
Are transfer payments counted in GDP?
Consequently, while the payment itself is not counted, as it does not represent real economic activity, goods or services purchased with that money by the recipient of the transfer payment are counted in the GDP. On the government level, transfer payments are a controversial topic.
Do transfer payments include subsidies?
Transfer payments do not include subsidies paid to farmers, manufacturers, and exporters, even though they are a one-way payment from the government. Transfer payments are often introduced or expanded during severe economic recessions.
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