Card 1 of 25
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).
Card 1 of 25
Fiscal policy Flashcards
25 flashcards on OCR A Level Economics Fiscal policy: the key terms, economic models and case studies you need to recall for Component 01, Component 02 and Component 03.