Which of the following is NOT an example of a transfer payment in the sense of the national income accounts?

CA Foundation · Business Economics · MTP · June 2024
Which of the following is NOT an example of a transfer payment in the sense of the national income accounts?
(A) A. Government family allowances
(B) B. Public unemployment insurance benefits
(C) C. Dividends paid by corporations to stockholders
(D) D. Disability pensions paid from the social insurance system

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Dividends paid by corporations to stockholders

Topics: Determination of National Income

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