Question

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2) Government transfer payments:

A are received as payment for inputs in the factor market.

B do not affect the level of public or private saving.

C are included as part of government purchases,

G. D can be viewed as negative tax payments, T.

Answer 1

Ans: D ) can be viewed as negative tax payments, T.

Explanation:

Government transfer payments refer to the payments made to the individual by the central or federal government through various social benefit schemes without any goods and services received in return. so government transfer payments can be viewed as negative tax payments, T.

Net taxes = Taxes paid to the government - Transfer payments

So government transfer payments are not received as payment for inputs in the factor market and not included as part of government purchases . However it  affects the level of public or private saving.