Which of the following is an example of government spending?

Study for the FBLA Exploring Economics Test. Master key concepts with flashcards and multiple choice questions, each offering hints and answers. Prepare confidently for your exam!

Government spending primarily refers to the expenditures made by the government to provide public goods and services that benefit society as a whole. These expenditures can include a wide range of activities such as funding education, maintaining public infrastructure like roads and bridges, providing healthcare services, and supporting law enforcement. By investing in public goods, the government addresses societal needs that are typically not met by the private market alone, ensuring that essential services are accessible to all citizens.

While tax refunds, investment in private corporations, and wealth distribution programs are related to the government’s fiscal policy, they do not fall under the direct definition of government spending as it pertains to the provision of services and goods. Tax refunds represent a return of funds to taxpayers rather than a new expenditure; investments in private corporations typically involve direct financial incentives rather than public goods provisioning; and wealth distribution programs may involve reallocation of existing resources, which doesn't directly generate new expenditures. Thus, expenditures on public goods and services is the clearest example of government spending in the context of economic policy.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy