ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Imports of goods and services
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Investment
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Consumer expenditure
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Government expenditure on goods and services
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Detailed explanation-1: -Definition: Government expenditure refers to the purchase of goods and services, which include public consumption and public investment, and transfer payments consisting of income transfers (pensions, social benefits) and capital transfer.
Detailed explanation-2: -Government expenditure is the sum of: intermediate consumption, gross capital formation, compensation of employees, other taxes on production, payable.
Detailed explanation-3: -It is the money incurred by the government on the social and economic development of the country.
Detailed explanation-4: -Government expenditure covers all the expenditure incurred by government under the account heads of “Revenue", “Capital” and “loans". Revenue expenditure can be classified into two categories : Non-developmental expenditure and Developmental expenditure.