Economics Multiple Choice Question – 1 August 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which of the following is an example of current government expenditure?

Select ONE answer:

  1. government spending on building new hospitals
  2. government spending on improving mobile network coverage in rural areas
  3. government spending on increasing the number of lanes on a motorway
  4. government spending on teachers’ salaries

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

  1. This is an example of capital government expenditure.
  2. This is an example of capital government expenditure.
  3. This is an example of capital government expenditure.
  4. Correct: Current government expenditure is spending on items such as raw materials and wages. It is short term spending that has to be renewed each year. In contrast, capital spending is spending on physical assets and is long term.

 

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