Transfer payments involve unearned income without goods/services exchange

Steps:

• Define transfer payment as government or private redistribution of income without direct exchange.
• Check A: Pocket money is parental income transfer to child, no service required.
• Check B: Donations are voluntary private transfers to charities, no repayment expected.
• Check C and D: Salary is compensation for work; unemployment benefit is government aid without work.

Why C is correct:

• Salary to a government teacher is payment for services provided, not a unilateral transfer per economic definitions like those in national income accounting.

Why the others are wrong:

• A: Pocket money is a family income transfer without exchange.
• B: Private donations redistribute income to charities without quid pro quo.
• D: Unemployment benefit is government welfare transfer to eligible individuals.

Final answer: C