Practice Developmental And Non-developmental Expenditure (5.4.3) - Chapter 5: Public Finance
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Developmental and Non-Developmental Expenditure

Practice - Developmental and Non-Developmental Expenditure

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Practice Questions

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Question 1 Easy

Define 'developmental expenditure'.

💡 Hint: Think about investments in infrastructure and human capital.

Question 2 Easy

What is a typical example of non-developmental expenditure?

💡 Hint: Consider costs that support government functions.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is developmental expenditure?

Expenditure on immediate welfare
Expenditure aimed at long-term growth
Expenditure on administration

💡 Hint: Consider its effects on society over time.

Question 2

True or False: Non-developmental expenditures promote economic development directly.

True
False

💡 Hint: Identify the role of these expenditures.

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Challenge Problems

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Challenge 1 Hard

Evaluate the consequences of a government leaning heavily towards non-developmental expenditure on a country's economy over five years.

💡 Hint: Consider both short-term and long-term effects on economic activity.

Challenge 2 Hard

Propose a balanced budget strategy that prioritizes both developmental and non-developmental expenditures, detailing funding sources.

💡 Hint: Think about the long-term benefits of each category.

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