4.5 - Expenditure

Question 1

What are the 3 types of spending?

Answer 1

Current
Capital
Transfer Payments

Question 2

What is Current Expenditure?

Answer 2

Spending on G+S for current use
Directly satisfy collective needs of community

Question 3

What is Capital Expenditure?

Answer 3

Govt spending on G+S to create future benefit

Question 4

What are Transfer Payments?

Answer 4

Transfers of money to groups/individuals

Question 5

What does Current Expenditure consist of?

Answer 5

Civil Service
Police
Doctors
Teachers
Military supplies

Question 6

What does Capital Expenditure consist of?

Answer 6

Infrastructure
Health
Research
Flood defence

Question 7

What do Transfer Payments consist of?

Answer 7

Social Security
Pension funds
Benefit payments

Question 8

Why is govt spending significant?

Answer 8

Merit + public good allocation
LRAS
Regional equality
Overcome market failure

Question 9

How can spending directly impact household incomes?

Answer 9

Welfare payments
Universal credit
Pensions

Question 10

How can spending indirectly impact household incomes?

Answer 10

Education + health provision
Social housing
Employment training