Asked by Yessie Musah on May 10, 2024
Verified
From 1960 to 2018, as percentages of U.S. output, government purchases have
A) declined, but transfer payments have increased significantly.
B) remained about the same, while transfer payments have increased slightly.
C) increased sharply, but transfer payments have also decreased significantly.
D) increased slightly, while transfer payments have remained about the same.
Transfer Payments
Payments made by the government to individuals or groups without expecting a good or service in return, often aimed at redistributing income, such as social security benefits and subsidies.
Government Purchases
Expenditures by government agencies on goods and services that directly satisfy public consumption or investment in public infrastructure.
- Acquire knowledge of the basic tenets and outcomes associated with public finance, including aspects of taxation, state expenditures, and indebtedness.
Verified Answer
CN
carlesia nunnallyMay 16, 2024
Final Answer :
A
Explanation :
From 1960 to 2018, government purchases as a percentage of U.S. output have declined, reflecting a shift in government spending priorities. Meanwhile, transfer payments, which include social security, Medicare, and other welfare programs, have increased significantly as a percentage of U.S. output. This reflects the growing role of the government in providing social safety nets and redistributing income.
Learning Objectives
- Acquire knowledge of the basic tenets and outcomes associated with public finance, including aspects of taxation, state expenditures, and indebtedness.
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