Answer:
The correct answer is option A.
Explanation:
Government purchases can be defined as the expenditure by the government on the final goods and services. It includes spending on goods and services required fro operating the government and for providing public goods. The expenditures of all tiers of government i.e. federal, state and local government are included in government purchase.
A transfer payment is a payment which does not provide any good or service in return. The social security benefits cannot be included in government purchases because it is a transfer payment. All the other expenditures are providing some good or service in return except social security benefits.