Which of the following is / are the example(s) of Transfer Payment(s) ?
- 1. Unemployment Allowance
- 2. Payment of Salary
- 3. Social Security Payments
- 4. Old age Pension
Select the correct answer using the code given below :
[amp_mcq option1=”1 and 3 only” option2=”1, 2 and 4 only” option3=”1, 3 and 4 only” option4=”None of the above” correct=”option3″]
This question was previously asked in
UPSC CDS-1 – 2016
Statement 1 (Unemployment Allowance), Statement 3 (Social Security Payments), and Statement 4 (Old age Pension) are examples of transfer payments. They are benefits provided by the state to support individuals without demanding current labour or services.
Statement 2 (Payment of Salary) is a payment made in exchange for services rendered (labour). It is part of factor income, not a transfer payment.