In the National Income Accounts, All of the Following Are

question 54

Multiple Choice

In the national income accounts, all of the following are classified as government purchases except:

• A) payments made to Social Security recipients.
• B) services provided by police officers.
• C) purchases of military hardware.
• D) services provided by U.S. senators.

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Definitions:

Free-Rider Problem

A problem intrinsic to public goods: Because people can enjoy the benefits of public goods whether or not they pay for them, they are usually unwilling to pay for them.

Remittances

Money sent by workers to people (usually family members) in their country of origin.

Illegal Immigrants

Individuals who enter or reside in a country without the required authorization or documents.

United States

A country consisting of 50 states and a federal district, recognized for its significant influence in global economics, politics, and culture.