Which Component Makes Up the Largest Part of Government Outlays

question 262

Multiple Choice

Which component makes up the largest part of government outlays in the federal budget?

• A) payment of indirect tax
• B) transfer payments
• C) debt interest
• D) government expenditures on goods and services

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Definitions:

Firm

An organization that produces goods or provides services, usually with the aim of making a profit.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Minimum Return

The lowest expected or required return on an investment over a specified period.

Long Run

A period of time in which all factors of production and costs are variable, allowing for all adjustments to take place in the analysis of economic conditions.