National Income Flashcards
What is Capital Expenditure?
Capital Expenditure involves investment in capital goods such as roads, school to produce goods
What is another name for Capital Expenditure?
Development Expenditure
What is Current Expenditure?
Current expenditure is spending on goods for present consumption and expenditure on wages and salaries of government workers.
What is the role of household?
to own factors of production
to buy goods and services
What is the role of firms?
to buy factor services
to produce goods and services
What is the role of government?
to tax household and firms for revenue
to engage in recurrent and capital expenditure
to make transfer payments
What is the role of the foreign trade sector?
to be domestic buyers of imports
to be foreign buyers of the exports of the given country
