Transfer payments are part of personal income but not national income because:
A. They are a payment for which no goods or services are exchanged.
B. Personal income is an earnings concept.
C. National income is a receipts concept.
D. They represent a payment to factors of production.
Answer:A
Transfer payments are part of personal income but not national income because:
A. They are a payment for which no goods or services are exchanged. B. Personal income is an earnings concept. C. National income is a receipts concept. D. They represent a payment to factors of production.