Government Purchases Include Spending on Goods and Services by

question 129

Multiple Choice

Government purchases include spending on goods and services by

• A)the federal government, but not by state or local governments.
• B)federal and state governments, but not by local governments.
• C)federal, state, and local governments.
• D)federal, state, and local governments, as well as household spending by employees of those governments.

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Definitions:

Capital Stock Per Worker

A measure of the amount of capital available per employee in a company or economy, indicating the level of investment in tools, buildings, and equipment each worker has to work with.

Output Per Worker

The average production or output produced per unit of labor, often used as a measure of labor productivity.

GDP Devoted To Investment

The portion of the Gross Domestic Product that is spent on investments in capital goods, infrastructure, and other activities to promote economic growth.

Poor Countries

Nations with low levels of economic activity, low per capita income, and generally low standards of living.