One Distinction Between Government Purchases and Transfer Payments Is That

question 49

Multiple Choice

One distinction between government purchases and transfer payments is that

• A) purchase are exhaustive, whereas transfers are nonexhaustive.
• B) purchase are nonexhaustive, whereas transfers are exhaustive.
• C) purchases are part of total government spending, whereas transfers are not.
• D) purchases are not part of total government spending, whereas transfers are.

---

Definitions:

Positive Externality

A benefit that affects someone who did not choose to incur that benefit, often related to economic activities.

Nominal

pertaining to names or terms, or representing values by names in certain contexts, such as nominal data in statistics which categorizes without a natural order.

Augmented

Enhanced or improved by adding features, components, or elements not originally present.

Complement

Something that completes or goes well with something else, often enhancing its qualities or effectiveness.