The two main categories of government expenditures are:
A) defense expenditures and tax refunds.
B) purchases of goods and purchases of services.
C) purchases of goods and services, and transfer payments.
D) income determined and nonincome-determined spending.

Question

Quizplus · Accepted Answer

The two main categories of government expenditures are purchases of goods and services, and transfer payments. Purchases of goods and services include spending on things like infrastructure, defense, and salaries for government employees. Transfer payments include welfare benefits, social security, and other payments that do not directly purchase goods or services but transfer money from the government to individuals.

The Two Main Categories of Government Expenditures Are