In the national income accounts, all of the following are classified as government purchases except:
A) payments made to Social Security recipients.
B) services provided by police officers.
C) purchases of military hardware.
D) services provided by U.S. senators.

Question

Quizplus · Accepted Answer

Payments made to Social Security recipients are classified as transfer payments, not government purchases. Government purchases refer to goods and services that the government buys from businesses or individuals. Therefore, all other options (B, C, and D) are classified as government purchases.

In the National Income Accounts, All of the Following Are