WAEC - Economics (2022 - No. 11)
An example of transfer payments in national income accounting is
money transferred to another country
transfer of funds from one bank to another
unemployment allowance paid to the citizens
the amount paid to a worker on transfer
Explicació
Transfer payment are payment of receipts not resulting from contribution to productive activities in the economy. They are mere transfers from one person to another, for example: pension, bursary, award, gift, unemployment benefit etc. When estimating or calculating national income, transfer payment are excluded.