List the three most important expenditure programs of the federal government. How do they differ from the three most important expenditure programs of state and local governments? Explain why it makes more sense for the federal government to purchase national defense rather than state governments.

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HADIA YOUSAF · Accepted Answer

Final Answer : The three most important expenditure programs of the federal government are income security, health, and national defense. The three most important expenditure programs of state and local government are education, health, and public order and safety. It makes sense for the federal government to purchase national defense because national defense is a public good; as such, the federal government can minimize the free-rider problem among states.

List the three most important expenditure programs of the federal government. How do they differ from the three most important expenditure programs of state and local governments? Explain why it makes more sense for the federal government to purchase "national defense" rather than state governments.

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