If a government spends $30 billion on public infrastructure, $115 billion on national defence, $20 billion on unemployment benefits, and $70 billion on civil services, then its total consumption expenditure is:
Question
If a government spends 115 billion on national defence, 70 billion on civil services, then its total consumption expenditure is:
Solution
To calculate the total consumption expenditure of the government, you simply need to add up all the individual expenditures.
Here's how you do it:
- Start with the expenditure on public infrastructure: $30 billion.
- Add the expenditure on national defence: 115 billion = $145 billion.
- Add the expenditure on unemployment benefits: 20 billion = $165 billion.
- Finally, add the expenditure on civil services: 70 billion = $235 billion.
So, the total consumption expenditure of the government is $235 billion.
Similar Questions
This is a component of GDP that is determined by this entity’s spending on public works, national defense, public education and other similar expenditures.Select one:a. Investmentsb. Net Exportsc. Governmentd. Consumption
mponents of SpendingValue(billions of dollars)Consumption$140Business fixed and residential investment$27Inventory stock at the end of prior year$10Inventory stock at the end of current year$5Depreciation$12Government outlays$80Government purchases$65Exports$21Imports$17Labor income$126Capital income$70Net income of foreigners$5Taxes, subsidies, and transfers$28Inventory investment = $−5Net exports = $4Gross domestic product = $241Statistical discrepancy = $12National saving =
If GDP (measured in billions of current dollars) is $5,465, consumption is $3,657, investment is $741, and net exports are –$1,910, then government purchases are:
Government expenditure is more effective in economies when
National output: $200000,Taxes: $10000,Consumption: $6000,Government Expenditures: $2000,Find Private Savings and Public Savings
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.