Question

how do transfer payments to low income households affect the incentive:

A to have a child at an early age

B to drop out of highschool

C the adandonment of childrens by fathers

Answer 1

So in economics, generally a transfer payment is defined as a redistribution of income and wealth to all the needy people by means of the government by making a payment to them on a regular period depending on the government scheme, and all these are being done without goods or services being received in return of the transfer, and these payments are mainly considered to be a non-exhaustive payment because they do not directly absorb resources or create output in an economy, thus it gives social stability to the people at the lower strata of the society which is helpful in living their life happiily.

Answer - To have a child at an early age