Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:
The government of a country wants to construct a bridge. It falls under which of the following category?
Options:
Capital expenditure
Capital receipt
Revenue expenditure
Revenue receipt
Correct Answer:
Capital expenditure
Explanation:
Construction of a bridge falls in the capital expenditure category. This is because such an expenditure lead to creation of an asset.