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JAMB Economics 1987 Question 45

Question 45

Public Finance

Transfer payments are

  1. A.transfer earnings
  2. B.money transferred from one country to another
  3. C.unearned income
  4. D.payment transferred from one account to another.
Show the answer and explanation

Answer: C (unearned income)

Explanation

Transfer payments, such as pensions and grants, are paid without any goods or services in return, so they are unearned income.