Public Expenditure Quiz

What are the two types of public expenditure?

• Revenue and Capital

• Domestic and International

• Private and Public

• Direct and Indirect

Which type of expenditure is incurred on building durable assets and non-recurring in nature?

• Unproductive Expenditure

• Capital Expenditure

• Revenue Expenditure

• All the three

According to the Canon of Benefit, public expenditure should be planned to yield maximum social advantage and social welfare of:

• The government

• The private sector

• The community as a whole

• A particular group

Which canon of public expenditure implies that the state should be economical in spending money?

• Canon of Benefit

• Canon of Surplus

• Canon of Economy

• Canon of Sanction

According to Adolph Wagner, what is the cause-effect relationship between economic growth and public expenditure?

• As the economy develops, the activities and functions of the government decrease

• As the economy develops, the activities and functions of the government remain constant

• As the economy develops, the activities and functions of the government increase

• As the economy develops, the activities and functions of the government become unpredictable

According to Wiseman and Peacock, what refers to the apparent tendency for the central government economic activities to become an increasing proportion of the total public sector?

• Concentration effect

• Expansion effect

• Displacement effect

• Inspection effect

On which countries' experience was Adolf Wagner's study on public expenditure based?

• Italy

• UK

• France

• Germany

What is one of the reasons for the growth of public expenditure in India?

• Welfare state

• Decrease in public debt

• Decrease in price level

• Decrease in population

The movement from older level of expenditure and taxation to a new and higher level is

called

• concentration effect

• displacement effect

• real balance effect

• inspection effect

Which of the following not a developmental expenditure of Govt.?

• constructing roads

• setting up educational institutions

• Expenditure incurred for paying interest

• starting up new enterprises