Calculate the government’s total spending (G) in 2015.

Question

BlackTom AI · Accepted Answer

Begin by identifying what is meant by government’s total spending (G) in a national budget table. Typically, G includes government expenditures on goods and services and transfers, i.e., the spending side of the budget.

Next, distinguish between spending items and revenue items in the table. Social welfare payments, health care, and defence are program expenditures or transfers paid by the government. In contrast, income tax, sales tax, and company tax are revenue items that represent sources of funds for the government, not expenditures.

Since the question asks for total spending in 2015, we should sum only the expenditure items for that year:
- Social welfare payments: 60
- Health care: 40
- Defence: 25

Add these values: 60 + 40 + 25 = 125.

The other rows (income tax, sales tax, company tax) do not contribute to G because they are revenues, not spending, so they are excluded from the calculation.

Thus, the government’s total spending in 2015 equals 125 (in the base currency units of the table).

BECO011 Week 9 Practice quiz

Calculate the government’s total spending (G) in 2015.

View Explanation

Log in for full answers

Similar Questions

Which transaction would be included in government spending (G)?

Which transaction would be included in government spending (G)?

Which transaction would be included in government spending (G)?

TRUE or FALSE: The largest expenditure of tax dollars collected by the US government needs is to pay for health insurance programs including Medicare and Medicaid.

Questions 22-24. Choose A, B or C as the best answer. 22. According to the speaker, a growing economy allows governments to give greater support to:

Why does money flow from government to firms?

Why does money flow from government to firms?

The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler