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UI Post-UTME Economics 2021 (Model questions) Question 5

Question 5

National Income

Bursary and pension payment in the national accounts are referred to as.....

  1. A.Income
  2. B.salaries
  3. C.Transfer payment
  4. D.wages
Show the answer and explanation

Answer: C (Transfer payment)

Explanation

Bursaries and pensions are paid without current goods or services in return, so they are transfer payments.