Subsidies to the producers should be treated as transfer payments. Defend or refute the given statement with valid reason.
Answers
Answer:
subsidies to the producer is the transfer payment.
explanation:-
A transfer payment is a one-way payment to a person or organization which has given or exchanged no goods or services for it. This contrasts with a simple "payment," which in economics refers to a transfer of money in exchange for a product or service.
Generally, the phrase "transfer payment" is used to describe government payments to individuals through social programs such as welfare, student grants, and even Social Security.
Answer:
subsidies are different from transfer payments. ... Such payments are excluded in the estimation of National Income. Whereas, subsidy is a form of financial or in kind of support extended to an economic sector or institution, business etc generally with the aim of promoting economic and social policy.
Explanation:
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