Question

Transfer payment can be described as

[1] The transfer of income by the government from surplus units to deficit units.

[2] The transfer of income by the financial institutions from surplus units to deficit units.

[3] The transfer of income by the government from the wealthy to the poor.

[4] The transfer of income by the firms from the wealthy to the poor.

Answer 1

[3] The transfer of income by the government from the wealthy to the poor.