1.
Purchases or the production of goods or services by government agencies are called:
(Points: 2)
        government purchases.
        government transfers.
        transfer payments.
        public taxes.


2.
An example of a government purchase is:
(Points: 2)
       
a Social Security payment to the elderly.

       
a Social Security payment to the disabled.

       
public school education.

       
expenditure on an unemployment compensation payment.



3.
The study of government expenditure and tax policy and the impacts of these policies on the economy is called:

(Points: 2)
        federal choice.
        federal deficit
        public finance.
        public debt.



4. Which of the following statements is true? (Points: 2)
        U.S. government agencies produce or purchase nearly 40 percent of all goods and services produced in the nation each year.
        The federal government is the largest single purchaser of goods and services in the world.
        Public finance is involved with how individuals in the public sector make choices that maximize their utility.
        In the United States, government purchases exceed government expenditures.


5. The primary source of the difference between government purchases and government expenditures is: (Points: 2)
        the government deficit.
        the government surplus.
        transfer payments.
        the revenue gap.