Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which of the following is an expenditure which leads to either creation of assets or payment of liabilities?

Options:

Budget surplus

Budget deficit

Capital expenditure

Revenue expenditure

Correct Answer:

Capital expenditure

Explanation:

Capital expenditure is the expenditure which leads to either creation of assets or payment of liabilities. For example, construction of bridges, repayment of loans etc.