A Level Economics (9708)•9708/11/O/N/19

Explanation
Transfer payments as non-productive income
Steps:
- Identify the key: Income without output contribution means no production involved.
- Recall definitions: Profits, salaries, and revenues tie to economic output; transfer payments do not.
- Match to choices: Eliminate A, B, C as they involve production; D fits non-productive transfers.
- Confirm: Transfer payments like welfare redistribute existing income without new output.
Why D is correct:
- Transfer payments are government or social redistributions (e.g., unemployment benefits) that provide income without requiring recipient contribution to goods/services production, per economic definitions.
Why the others are wrong:
- A. Profit arises from business output and sales, directly contributing to economic production.
- B. Salary compensates labor input, which produces goods or services.
- C. Revenue comes from selling output, linking directly to production value.
Final answer: D
Topic: Introduction to the circular flow of income
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