Which of the following is not considered part of government purchases?Group of answer choicesTransfer payments paid by the governmentTeacher salaries paid by the governmentMilitary equipment purchased by the governmentA bridge purchased by the government
Question
Which of the following is not considered part of government purchases?Group of answer choicesTransfer payments paid by the governmentTeacher salaries paid by the governmentMilitary equipment purchased by the governmentA bridge purchased by the government
Solution
Transfer payments paid by the government are not considered part of government purchases. Here's why:
-
Government purchases refer to spending on goods and services that are used to directly fulfill the government's role. This includes things like salaries for government employees, military equipment, and infrastructure like bridges or roads.
-
Transfer payments, on the other hand, are payments made by the government to individuals or other entities without receiving any goods or services in return. These include things like social security benefits, unemployment benefits, and welfare payments.
-
Therefore, while teacher salaries, military equipment, and a bridge would all be considered government purchases, transfer payments would not. They are a different category of government spending.
Similar Questions
Government spending adds directly to GDP through _____ and indirectly through _____.Group of answer choicesgovernment purchases; military spendingtransfer payments; government purchasesgovernment purchases; transfer paymentshigher interest rates; crowding out
Which of the following is an example of a government buyer? Mayo Clinic Hospital Procter & Gamble U.S. Marine Corps Nucor Steel Corporation Walmart
Transfer payments are excluded from government purchases in GDP accounting because ______.Multiple choice question.nothing is being produced in return for the paymentthey are difficult to measurethey are a reward to individuals who have been productive their entire livesthey are already included as part of investment
Which of the following is NOT a major category included in the balance of payments?Multiple choice question.Capital accountGovernment debt accountCurrent accountOfficial settlement account
Which of the following is not an intangible asset arising from a government grant?Group of answer choicesGoodwillPatentTrademarkTrade name
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.