Economics A-Level
Transfer Payments
What Transfer Payments means in Economics A-Level, as defined for Pearson Edexcel.
Definition of Transfer Payments
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
- National income (Pearson Edexcel A-Level)
Related terms
Using Transfer Payments in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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