The primary source of the difference between government purchases and government expenditures is:
A) the government deficit.
B) the government surplus.
C) transfer payments.
D) the revenue gap.

Question

Quizplus · Accepted Answer

Government purchases represent spending on goods and services, while government expenditures include both purchases and transfer payments, which are payments made to individuals or businesses without the expectation of receiving goods or services in return. Therefore, transfer payments are the primary source of the difference between government purchases and government expenditures.

The Primary Source of the Difference Between Government Purchases and Government