Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Which among the following is Capital Expenditure :

Options:

Disinvestment

Income tax

Construction of Metro

Dividends

Correct Answer:

Construction of Metro

Explanation:

The correct answer is option (3) : Construction of Metro

Capital expenditure typically involves spending on assets that have long-term value and contribute to the productive capacity of an economy. Construction of infrastructure like the Metro falls under capital expenditure. Disinvestment is the sale of assets, not an expenditure. Income tax and dividends are usually associated with revenue expenditure.