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What are the principal difference between government purchases of goods and services and transfer payments?
Wiki User
∙ 7y ago
Government spending on goods and services is like individual spending or corporate spending for goods delivered and services received.
Transfer payments are made by governments to individuals or corporations without expectation of receiving either a physical product or a service in return.
Examples include:
- Payments to disabled people which allow them to survive despite having no way to earn an adequate income
- Payments "earned" or expected via "social contract" such as Social Security payments
- Payments which have the effect or dampening the impact of localized disasters. Disaster relief and similar payments are seen as a form of "fair" distribution of the harm from random events or simply because the public wants to achieve some form of fairness.
- Payments to farmers and farming corporations to get them to NOT grow certain crops (unless you see not growing something to be a "service")
- Payments made simply because a special interest group had the money and clout to influence legislation in their favor.
Wiki User
∙ 12y ago
Wiki User
∙ 10y agowhat are the principal between government purchases of goods and service and transfer payments
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Government purchases in national income accounts would include expenditures for payments of?
Social securiy
What is the difference between expropriation and confiscation?
expropriation means seizure of private property by the government after paying compensation. confiscation is similar as expropriation, but confiscation does not involve such payments.
Why are transfer payments not included as a government expenditure when calculating GDP?
no, because they are not payments for currently produced goods or services.
Government payments to protect or encourage economic activity?
Subsidy
How do you calculate public savings?
Taxes- Government Spending- Transfer Payments
Transfer payments are excluded from government purchases in GDP accounting because?
they are difficult to measure
Government purchases in national income accounts would include expenditures for payments of?
Social securiy
What journals do you use to record purchases on account purchases for cash and cash payments?
Purchases journal is used to record purchases on account while Cash payment journal is used to record purchases for cash and cash payments.
Explain how loan supports and deficiency payments work?
Deficiency payments are government payments to compensate farmers for all or part of the difference between producer prices
How can you lower the principal owed on your mortgage?
You can reduce the principal by making extra payments toward the principal each payment cycle. Ask your lender how best to do it and make certain the amount is deducted from the principal.You can reduce the principal by making extra payments toward the principal each payment cycle. Ask your lender how best to do it and make certain the amount is deducted from the principal.You can reduce the principal by making extra payments toward the principal each payment cycle. Ask your lender how best to do it and make certain the amount is deducted from the principal.You can reduce the principal by making extra payments toward the principal each payment cycle. Ask your lender how best to do it and make certain the amount is deducted from the principal.
How do you own a home years sooner without making extra interest payments?
You make extra payments toward the principal.You make extra payments toward the principal.You make extra payments toward the principal.You make extra payments toward the principal.
Why do interest payments decrease each month and the principal payment increases?
Mortgages are typically "front-loaded." That means the interest is paid more aggressively in the beginning of the life of the loan than the principal. As the loan matures, less of your payment is devoted to paying the interest on the loan and more is applied to your principal balance. It is important to mark extra payments as being toward the principal, otherwise your mortgage servicer may apply any extra payments as an additional monthly payment instead of reducing the principal.
Balance of payments deficit?
A balance of payments deficit means there is an imbalance in the balance of payments of a country where the payments the country makes are more than the payments they received. It means the balance of payments is negative. A balance of payments deficit is,when government expenditure is more than government revenue
Equity Line of Credit Payments?
Equity Line of Credit Payments For a ten year draw period, this calculator helps determine both your interest-only payments and the impact of choosing to make additional principal payments.
What best describes government payments to a person or business?
Transfer Payments
Is it legal for a bank to take a portion of a check you sent them for the principal of your mortgage only payment and use it for future payments and interest for themselves?
It depends on your mortgage contract and other details. If you owe interest it can usually take that from a check you sent for principal only. You should review the documents you signed at the closing carefully for any section that deals with making payments toward the principal outside of regular payments.It depends on your mortgage contract and other details. If you owe interest it can usually take that from a check you sent for principal only. You should review the documents you signed at the closing carefully for any section that deals with making payments toward the principal outside of regular payments.It depends on your mortgage contract and other details. If you owe interest it can usually take that from a check you sent for principal only. You should review the documents you signed at the closing carefully for any section that deals with making payments toward the principal outside of regular payments.It depends on your mortgage contract and other details. If you owe interest it can usually take that from a check you sent for principal only. You should review the documents you signed at the closing carefully for any section that deals with making payments toward the principal outside of regular payments.
Where to enter cash and credit purchase?
Purchases Journal & Cash Payments Journal.Also called as Specialized Jounal Entries. Purchases Journals record transactions that involve purchases on credit. Source documents here would probably be invoices. The purchase of inventory on credit is recorded in the purchases journal. Cash Receipts Journal record transactions that involve payments received with cash Source documents would probably be receipts and cheque butts.
