Which of the following is a government 'expenditure' and not a government 'purchase'?
A)The federal government buys a new ship for the defence force.
B)The federal government pays the salary of police.
C)The federal government pays unemployment benefits.
D)The federal government pays to support medical research on AIDS.

Question

Quizplus · Accepted Answer

Expenditure refers to any kind of payments made by the government, including transfer payments like unemployment benefits, whereas purchase refers to the acquisition of goods and services like buying a new ship or paying for medical research. Option C is a transfer payment made by the government to support citizens who are unemployed.

Which of the Following Is a Government 'Expenditure' and Not