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CAIE A-Level Economics 5.2.5 Government Spending

Practise classifying current, capital and transfer expenditure, calculating totals from budget tables and selecting health or education allocations using marginal welfare evidence.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • classify infrastructure or equipment as capital, operating services as current and benefits as transfers
  • calculate transfer payments or spending changes from a government expenditure table
  • allocate a fixed budget by comparing marginal welfare gains across health and education

5.2.5—Government spending question 1

[Maximum number: 1]

A government spends money to provide an education for students.
Which type of spending is capital expenditure?

A

computers for classrooms

B

grants for university students

C

rent for school buildings

D

wages for teachers

All question bank results loaded