Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 14

Money is paid by the government to an unemployed worker in the form of a benefit. Why is this called a transfer payment?

1. AThe payment comes from taxes paid by employed workers.
2. BThe payment comes from government savings, not current income.
3. CThe payment is made without the production of goods and services taking place.
4. DThe payment must be spent as directed by the government.

As printed in the paper