Identify whether each of the following government expenditures is a payment for goods and services or a transfer payment: a) A local public school hires a new teacher. Payment for goods and services Transfer payment b) Medicare pays for a knee replacement for a 66-year old. Transfer payment Payment for goods and services c) A poor family gets food stamps. Transfer payment Payment for goods and services d) A local planning office hires a planner. Transfer payment Payment for goods and services

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?