What do economists mean when they say government purchases are “exhaustive” expenditures whereas government transfer payments are “non-exhaustive” expenditures? Cite an example of a government purchase and a government transfer payment.
3. What are the main categories of government spending? What are the main categories of government revenue?
4. What is the most important source of revenue and the major type of expenditure at the federal level?
5. For state and local governments, what are the three most important sources of revenue and types of expenditure?
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