Future Business Leader Achievments (FBLA) Economics Practice Exam

Which level of government employs more people and purchases more goods and services?

1. State government

2. Local government

3. Federal government

4. International organizations

The correct answer is: Federal government

The federal government employs more people and purchases more goods and services compared to state and local governments. This is due to its broad range of responsibilities that include national defense, social security, and various federal programs that require substantial staffing and procurement of resources. The federal government operates numerous agencies and departments, each with extensive workforce and operational budgets, which contribute significantly to overall employment levels and the demand for goods and services. In contrast, while state and local governments also employ a significant number of people and procure goods and services, their scope is more limited to regional and community needs such as education, law enforcement, and infrastructure. International organizations do not primarily function in the same context as government levels and focus on collaboration for global issues, rather than direct employment and purchasing in the manner that federal, state, and local governments do. Thus, the federal government's expansive role enables it to surpass the employment and procurement levels of other governmental entities.