Question : Which of the following is a capital expenditure?
Option 1: Expenditure on administrative services.
Option 2: Grants given to state government.
Option 3: Payment of salaries to the staff of government department.
Option 4: Defence equipment purchased from Russia
Correct Answer: Defence equipment purchased from Russia
Solution : Defence equipment purchased from Russia is a capital expenditure as it increases assets of the government. Rest of the three are revenue expenditure of government. Hence Option D is correct
Question : Which of the following statement are true?
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Option 1: Expenditure on subsidies
Option 3: Repayment of loan.
Option 4: Expenditure on collection of taxes.
Question : Which of the following is a revenue expenditure?
Option 2: Defence capital equipment purchased from Germany
Option 3: Expenditure on construction of school building
Option 4: Amount borrowed from USA repaired
Option 1: Salary paid army officer.
Option 2: Grants given by central government to state government
Option 3: Interest paid on nation death
Option 4: Expenditure on construction of Metro.
Question : _____________________ is the expenditure incurred by the central government on various administrative services.
Option 1: Private final consumption expenditure.
Option 2: Government final consumption expenditure.
Option 3: Gross domestic capital formation.
Option 4: Net exports
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