A national government pays the salary of a meteorologist who works for the national weather agency. How is this payment classified within the government's outlays?

Distinguishing Government Expenditures and Transfer Payments

Analyzing a Government's Annual Budget

A government's payment of unemployment benefits to a laid-off worker is classified as an expenditure on goods and services because the payment stimulates economic activity.

Categorizing Interest on Government Debt

Classifying a Government Subsidy Program

A government increases its total outlays by $100 million. Which of the following actions represents a government expenditure on goods and services, distinguishing it from a transfer payment or an interest payment?

Critiquing a Political Statement on Government Spending

A government is considering two policy options, each costing $50 billion.

• Option A: Give a $50 billion grant to a private corporation to support its research and development, with no specific product or service delivered directly to the government in return.
• Option B: Spend $50 billion to hire contractors to build new public highways and bridges.

Which statement best evaluates these two options according to the principles of classifying government outlays?