The federal government spends more on foreign aid than it spends on transportation, education, and agriculture combined

Which of the following checks issued by the government represents a transfer payment?

A) The federal government pays a defense contractor for development of a missile system. B) The federal government pays a retiree her Social Security benefits. C) The state of Oregon pays a construction firm for its work in repairing a state highway. D) The state of Illinois pays groundskeepers at the state capitol building their weekly wages.

Most of the income of Americans comes from

a. transfer payments. b. the ownership of bonds and physical assets. c. the ownership of bonds and corporate stocks. d. the ownership of human capital.