All of the Following Actions Increase Government Purchases of Goods

question 126

Multiple Choice

All of the following actions increase government purchases of goods and services except the:

• A)federal government sending an Old Age Security cheque to Betty Jones.
• B)federal government sending a paycheque to the prime minister of Canada.
• C)federal government buying a military plane.
• D)city of Toronto buying a library book.

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Definitions:

Operating Constraints

Limitations or restrictions that affect the performance or output of a process or system.

Maximum Output

The highest level of production that a company can sustain with the current resources and technologies.

Capacity

The throughput, or number of units a facility can hold, receive, store, or produce in a period of time.

Demand

The quantity of a product or service that consumers are willing and able to purchase at a certain price.