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WAEC Economics 2019 Objective — Question 32

Question 32 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.

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Which of the following items is not considered as a transfer payment?

  • A. pension pay
  • B. Government subsidy
  • C. students grants
  • D. Doctor's salaryCorrect

Explanation

A transfer payment is income received without a corresponding good or service being provided in return (e.g. pensions, subsidies, grants). A doctor's salary, by contrast, is income that is earned through work.

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