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
Multiple Post. Please refer to your later post, which I saw first.
Sra
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.
To determine whether each item is a government purchase of goods and services or a government transfer payment, we need to understand the definitions of these terms.
A government purchase of goods and services refers to when the government buys goods (e.g., office supplies, military equipment) and services (e.g., construction, legal services) directly from individuals, businesses, or other organizations.
A government transfer payment, on the other hand, is a payment made by the government to individuals, groups, or other levels of government. These payments are typically designed to assist or support individuals or organizations and do not involve an exchange of goods or services.
Now let's categorize each item based on these definitions:
a. The Apollo - This is not a specific item or payment, so we cannot categorize it as either a government purchase or a transfer payment.
b. Subsidy to agriculture and industry - This is considered a government transfer payment. Subsidies are financial assistance provided by the government to support specific industries or sectors.
c. Social security - This is also a government transfer payment. Social security payments provide financial support to eligible individuals, including retirees, disabled individuals, and survivors.
d. Salary received by federal employee - This is a payment for services provided, so it falls under government purchases of goods and services. The government is purchasing labor and expertise from federal employees.
e. Unemployment benefits paid to a laid-off worker - This is a government transfer payment. Unemployment benefits are financial support provided to workers who have lost their jobs and meet certain eligibility criteria.
To summarize:
- Government purchase of goods and services: d. Salary received by federal employee
- Government transfer payments: b. Subsidy to agriculture and industry, c. Social security, e. Unemployment benefits paid to a laid-off worker