Final answer:
The correct transfer payments among the options provided are welfare and tax returns, as they involve the government providing funds without receiving goods or services in exchange. Private loans and student scholarships are not transfer payments as they typically involve private funds and are given in exchange for academic achievement. Options A and D are the correct answers.
Step-by-step explanation:
Transfer payments are a particular type of government expenditure where funds are provided to individuals without the government receiving any goods or services in return. Such payments are typically made to support individuals who may not otherwise have sufficient income, thus enabling them to participate in the economy. Transfer payments include a variety of benefits that are focused on enhancing an individual's welfare and economic circumstances without directly exchanging for labor or products.
Welfare payments are a prime example of transfer payments. These are funds provided by the government to support individuals or families in need, particularly when they are unable to earn enough income through employment. Welfare can help cover basic living expenses, and since the government does not directly receive anything in return, it fits the definition of a transfer payment.
Tax returns can also be considered a form of transfer payment to some extent. While not a direct welfare benefit, tax returns involve the government essentially 'transferring' money back to taxpayers—money that it does not use to purchase goods or services—it's a repayment of over-collected taxes, thus it could technically qualify as a type of transfer payment.
However, private loans and student scholarships do not usually qualify as transfer payments, because they often come from private entities and not the government. Furthermore, student scholarships, while they're financial awards, are typically given in exchange for potential or realized academic achievement or to promote education, so the entity providing the scholarship indirectly 'receives' something in return: furthering education and supporting academic excellence.
The correct options for the question 'which of the following are transfer payments?' are: