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5.2.5 government spending

What does capital spending create?

A

Capital spending creates long-lived assets such as roads, schools and hospitals.

B

Capital spending covers recurring costs such as wages, maintenance and electricity.

C

Capital spending redistributes income through benefits and pensions.

D

Capital spending pays for goods and services used immediately by households.

5.2.5 government spending Flashcards

  1. Intl A Level
  2. /Economics
  3. /5.2.5 government spending

24 flashcards on CIE Intl A Level Economics 5.2.5 government spending: the key terms and definitions you need to recall.