Which of the following is a government expenditure,but is not a government purchase?
A)The federal government buys a Humvee.
B)The federal government pays the salary of an FBI agent.
C)The federal government pays out an unemployment insurance claim.
D)The Federal government pays to support research on Aids.

Question

Quizplus · Accepted Answer

Government expenditure refers to any payment made by the government for goods and services, transfer payments, or subsidies. A government purchase refers to the purchase of goods and services by the government for its own use. Option A and D involve direct purchases of goods and services by the government, while Option B involves payment for the services of a government employee. Option C involves payment of transfer payments to individuals who meet certain criteria (i.e. being unemployed), and therefore, it is a government expenditure but not a government purchase.

Which of the Following Is a Government Expenditure,but Is Not