economics

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which of the following are government purchases of goods and services and which are government transfer payments?a.the apollo,b.subsidy to agriculture and industry,c.social security,d.salary received by federal employee,e.unemployment benefits paid to a laid-off worker

  • economics -

    Multiple Post. Please refer to your later post, which I saw first.

    Sra

  • economics -

    a. The apollo:
    It's government purchase.

    b. Subsidy to agriculture and industry:
    It's transfer payments because it didn't produce things. Literally, it's kind of wealth distribution.

    c. Social security:
    It's also transfer payments. The reason is the same as previous question.

    d. Salary received by federal employee:
    It's government purchase, because the government pay money for federal employee's services.

    e. Unemployment benefits paid to a laid-off worker:
    It's transfer payment, because it's just a kind of money distribution.

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