Questions: Transfer payments are payments to individuals for which no current goods or services are exchanged.

The answer is: payments to individuals for which no current goods or services are exchanged.

Explanation for each option:

1. Payments to individuals for which no current goods or services are exchanged: This is the correct definition of transfer payments. Transfer payments are typically government payments to individuals, such as social security benefits, unemployment benefits, or welfare, where the recipient does not provide any goods or services in return at the time of the payment.

2. Benefits to increase market inequity: This is incorrect. Transfer payments are generally intended to reduce market inequity by providing financial assistance to those in need, thereby helping to redistribute income and support economic stability.

3. Payments to individuals for which current goods or services are exchanged: This is incorrect. Such payments would be considered transactions or purchases, not transfer payments. Transfer payments do not involve an exchange of goods or services at the time of the payment.

4. Benefits that cause unemployment: This is incorrect. While there is debate about the potential disincentive effects of some transfer payments on employment, the primary purpose of transfer payments is not to cause unemployment but to provide financial support to individuals who are unemployed or otherwise in need.