Which of the following is included as government consumption and gross investment in the national income accounts?
A)tanks bought for use by the U.S.army
B)interest on public debt
C)unemployment insurance payments
D)social security benefit payments

Question

Quizplus · Accepted Answer

Tanks bought for use by the U.S. army are considered government consumption and gross investment as they are being used by the government for defense purposes.

Answer: B
 Interest on public debt is not considered government consumption and gross investment as it does not represent current spending by the government.

Answer: C
 Unemployment insurance payments are not considered government consumption and gross investment as they represent transfer payments rather than spending on goods or services by the government.

Answer: D
 Social security benefit payments are not considered government consumption and gross investment as they represent transfer payments rather than spending on goods or services by the government.

Which of the Following Is Included as Government Consumption and Gross