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    Exhaustive and non-exhaustive expenditures

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    Explain what economists mean when they say government purchases are "exhaustive" expenditures whereas government transfer payments are "non-exhaustive" expenditures. Give an example of a government purchase and a government transfer payment with explanations.

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    The size of the role of the government in the economy is examined by determining government purchases of goods and services and the governments transfer payments (McConnell & Brue, 2008, p. 75). Government purchases are said to be exhaustive while government transfer payments are said to be non-exhaustive. These two outlays are ...

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    This solution explains exhaustive and non-exhaustive expenditures.