Distinguish between current expenditure and capital expenditure in a government budget.
A
- Current expenditure: Spending on exports and imports in the current account (e.g. trade in goods, services).
- Capital expenditure: Spending financed only through borrowing (e.g. government bonds, loans).
B
- Current expenditure: Recurring spending on day-to-day running costs (e.g. public sector wages, consumables).
- Capital expenditure: Investment in long-term physical assets (e.g. motorways, hospitals).
C
- Current expenditure: Investment in long-term physical assets (e.g. motorways, hospitals).
- Capital expenditure: Recurring spending on day-to-day running costs (e.g. public sector wages, consumables).
D
- Current expenditure: One-off spending that permanently reduces the national debt (e.g. debt repayments, cancellations).
- Capital expenditure: Regular payments to households that replace lost income (e.g. pensions, benefits).
Fiscal policy Flashcards
Flashcards for OCR A Level Economics Fiscal policy, covering the key terms, economic models and case studies you need to recall for Component 01, Component 02 and Component 03. 25 cards, matched to the OCR A Level Economics (H460) specification. Recall questions account for roughly 25% of marks at A Level Economics, so these target the marks you can secure before the paper starts.