Which of the following is an example of government expenditure?
(i) military spending
(ii) interstate highway construction
(iii) construction of a new factory
A)(i), (ii), and (iii)
B)(i) and (ii)
C)(ii) and (iii)
D)(iii) only

Question

Quizplus · Accepted Answer

Government expenditure refers to the spending of government funds on various goods and services to achieve certain objectives. Out of the options provided, only military spending (i) and interstate highway construction (ii) qualify as government expenditure as they are funded by the government's budget. Construction of a new factory (iii), on the other hand, does not qualify as it is a private investment and not a direct government expenditure. Therefore, the best choice is (B) (i) and (ii).

Which of the Following Is an Example of Government Expenditure