Transfer payments
What Transfer payments means in Economics A-Level, as defined for AQA, Pearson Edexcel.
Definitions of Transfer payments
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Reference: AQA
Payments excluded from national income calculations because they do not represent new production of goods or services.
Government payments to individuals (e.g., welfare, pensions) for which no good or service is exchanged; excluded from GDP to avoid double counting.
Topics that use Transfer payments
- The circular flow of income (AQA A-Level)
- National income (Pearson Edexcel A-Level)
Related terms
- Circular flow of income
- Economic growth
- Economic welfare
- Full employment income
- GNI (Gross National Income)
- Inflation
- Injections
- Living standards
Using Transfer payments in the exam
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