Differentiate between government purchases of goods and services and government transfer payments

What will be an ideal response?

Transfer payments are government payments such as unemployment compensation, Social Security benefits, welfare payments, and Medicare benefits. They are called transfer payments because they are essentially transferring funds from revenue accounts to those entitled to receive them. No current production is being performed by the recipients. Government purchases of goods and services such as military products and public employees’ salaries represent payment for the goods and services produced for the public sector.

Economics

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The fact that individuals whose credit worthiness is less than it appears to be are those who are most willing to borrow funds at any given interest rate is an example of

A) moral bonuses. B) diverse origins. C) symmetric information. D) adverse selection.

Economics

P x Q is:

a. A stock value. b. A flow value. c. Totally unrelated to stocks and flows. d. Equal to real GDP

Economics