Which example does NOT illustrate government purchases of goods and services?
A) a federal prosecutor's salary
B) new pavement for interstate highway I-95
C) a surgeon's bill reimbursed under the Medicare program
D) equipping U.S. air marshals with electroshock weapons

Question

Quizplus · Accepted Answer

The reimbursement of a surgeon's bill under the Medicare program is an example of a transfer payment, not a government purchase of goods and services. Transfer payments are payments made by the government to individuals or other entities in which no goods or services are received in return. Choices A, B, and D all involve the government purchasing goods or services.

Which Example Does NOT Illustrate Government Purchases of Goods and Services