Transfer payments are government benefits without exchange of goods or services

Steps:

• Recall definition: Transfer payments are one-way government transfers to individuals, like welfare or pensions, not for current production.
• Evaluate each option: Check if it's a payment for work, investment, or asset use versus a pure benefit.
• Identify matches: Pensions fit as retirement benefits without requiring services.
• Confirm: Only option C aligns with no quid pro quo.

Why C is correct:

• Pensions are government transfers to retirees for past contributions, without current goods/services exchanged, per national income accounting definitions.

Why the others are wrong:

• A: Dividends are corporate profit shares to owners, a return on investment, not a government transfer.
• B: Civil servant income is wages for performed services, classified as factor payments.
• D: Rent is payment for property use, a market transaction for resource provision.

Final answer: C