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

Question

Quizplus · Accepted Answer

According to the Federal Procurement Data System, the federal government spends over $500 billion on goods and services each year, making it the largest single purchaser of goods and services in the world. Option A is incorrect as it states that government agencies produce nearly 40% of all goods and services in the US, which is not true. Option C is incorrect as it defines public finance as something else entirely. Option D is incorrect as government purchases are a part of government expenditures.

Which of the Following Statements Is True