Which of the following best defines transfer payments?

Correct option is B

The correct answer is (b) Payments made by the government to individuals without any corresponding production of goods or services
 Transfer payments refer to payments made by the government to individuals or groups without any corresponding production of goods or services.
 These payments are typically made to redistribute income and wealth among different sections of society or to provide social assistance.
 Examples of transfer payments include welfare benefits, unemployment benefits, social security payments, and subsidies.
Facts to remember:
 Old age pension schemes in India:
 Indira Gandhi National Old Age Pension Scheme:
 It covers Indians who are 60 years and above and live below the poverty line.
 National Pension System:
 It is available to all Citizens (can join in the age group of 18-65) of India since May 2009.
 Atal Pension Yojana:
 Any citizen of India(who subscribes between 18-40 years) can join it, It provides a minimum guaranteed pension ranging from Rs 1000 to Rs 5000 upon attaining 60 years of age.