What Are the Two Ways Governments Make Purchases

question 77

Multiple Choice

What are the two ways governments make purchases?

• A)Cash or credit
• B)Contracting previous suppliers and bids
• C)Bids and negotiated contracts
• D)Lottery system and contract negotiations
• E)Request for new purchases and recurring orders

---

Definitions:

Microeconomics

The area of economics focused on analyzing how firms and individuals decide to distribute scarce resources.

Macroeconomics

A branch of economics that studies how the aggregate economy behaves, focusing on indicators such as GDP, unemployment rates, and inflation.

Descriptive Economics

The branch of economics focused on describing the components of the economy and how they function, without making judgments about them.

Institutional Economics

A branch of economics focusing on the role of institutions in shaping economic behavior.