Which of the Following Is Included in Government Purchases

question 57

Multiple Choice

Which of the following is included in government purchases?

• A)unemployment benefits a state pays
• B)Social Security payments the U.S.government makes
• C)the services of a U.S.government attorney valued at the cost of her salary
• D)All of the above are correct.

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Definitions:

Domestic Price

The price of a good or service within a country; this can be influenced by tariffs, taxes, and supply and demand.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariff barriers.

Competition

The rivalry among businesses to attract customers, which can lead to improvements in products, services, and prices.

Efficiency

The optimal allocation of resources to maximize the production of goods and services.