Practice Classification Of Expenditure (5.1.3) - Government Budget and the Economy
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Classification of Expenditure

Practice - Classification of Expenditure

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is revenue expenditure?

💡 Hint: Think about what types of expenses a government has on daily operations.

Question 2 Easy

Give an example of capital expenditure.

💡 Hint: Consider investments that create long-term value.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does revenue expenditure not lead to?

Creation of physical assets
Maintenance of public services
Payment of salaries

💡 Hint: Look for expenditures that support functioning costs.

Question 2

True or False: Capital expenditure typically includes funding for education programs.

True
False

💡 Hint: Consider the nature of funding.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Evaluate a government that has a growing revenue expenditure but stagnant capital expenditure. What implications does this have for economic growth?

💡 Hint: Consider the balance between maintaining services and investing in the future.

Challenge 2 Hard

Propose strategies for a government needing to increase capital expenditure while managing a high level of non-plan expenditure.

💡 Hint: Think about prioritizing investment over routine costs.

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Reference links

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