An example of a government purchase is:
A) a Social Security payment to the elderly.
B) a Social Security payment to the disabled.
C) public school education.
D) expenditure on an unemployment compensation payment.

Question

Quizplus · Accepted Answer

Public school education is a government purchase because it is a good or service bought by the government for the benefit of its citizens. Social Security payments and unemployment compensation payments are transfer payments, in which the government transfers income from one group to another, rather than purchasing goods or services.

An Example of a Government Purchase Is