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2.1 Introduction to the national economy

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Question 25

The table shows four transactions in the UK economy.

TransactionDescription
1The government receives business rates from the owner of an office building.
2The government pays for repairs to the roof of an existing hospital.
3The government pays for the construction of a new prison.
4The government pays the salaries of teachers at a state school.

Which transaction is UK government expenditure and is classified correctly?

[1]
A

Transaction 4: transfer payment

B

Transaction 1: current spending

C

Transaction 2: capital spending

D

Transaction 3: capital spending

Markscheme

2.1 Introduction to the national economy Questions

  1. GCSE
  2. /Economics
  3. /2.1 Introduction to the national economy

75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.

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