What are the main categories of the federal government outlays?

Question

Quizplus · Accepted Answer

The main categories of federal government outlays are transfer payments, which includes social security, medicare, Medicaid, and other forms of assistance; expenditures on goods and services, which includes national defense, healthcare, education, and infrastructure projects; and debt interest, which is the cost of borrowing to finance government spending. Option A is incorrect because personal income taxes are a source of revenue, not an outlay. Option C is incorrect because investment income is also a source of revenue, not an outlay. Option D is incorrect because indirect taxes and farmers' subsidies are not major categories of outlays. Option E is incorrect because property taxes and sales taxes are levied by state and local governments, not the federal government.

What Are the Main Categories of the Federal Government Outlays