Which of the following is a capital expenditure of the government? MCQ with Answer and Explanation

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Which of the following is a capital expenditure of the government?

A. Subsidies

B. Interest payments

C. Construction of a new highway

D. Payment of salaries

Answer: Option C

Solution (By JKSSB Mock Tests)

Capital expenditure creates assets or reduces liabilities. Construction of a highway creates a durable asset and is therefore capital expenditure.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Atal Pension Yojana' is primarily targeted at:

A. organized sector employees only

B. government employees only

C. children

D. unorganized sector workers

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Correct Answer: Option D

Explanation:
Atal Pension Yojana provides pension to workers in the unorganized sector.

This question belongs to: Economy GK Economy Set 1

Question #2

The circular economy concept emphasizes:

A. unlimited resource extraction

B. reuse, recycling and regeneration of resources

C. increasing waste generation

D. linear production and disposal

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Correct Answer: Option B

Explanation:
A circular economy emphasizes reuse, recycling and regeneration to minimize waste.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a characteristic of a developing economy?

A. High rate of capital accumulation

B. Dualistic economic structure

C. High productivity in agriculture

D. Low dependence on foreign trade

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Correct Answer: Option B

Explanation:
Developing economies often exhibit dualism — coexistence of a modern industrial sector and a traditional agricultural sector with low productivity.

This question belongs to: Economy GK Economy Set 1

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