Question 4: Assertion: Capital expenditure in a government budget refers to spending on long-term investments like infrastructure, which do not provide immediate financial returns. Reasoning: Capital expenditures are crucial for economic development and can lead to increased public debt. A) Both assertion and reasoning are true, and the reasoning is a correct explanation of the assertion. B) Both assertion and reasoning are true, but the reasoning is not a correct explanation of the assertion. C) The assertion is true, but the reasoning is false. D) Both assertion and reasoning are false.

Question 4: Assertion: Capital expenditure in a government budget refers to spending on long-term investments like infrastructure, which do not provide immediate financial returns. Reasoning: Capital expenditures are crucial for economic development and can lead to increased public debt. A) Both assertion and reasoning are true, and the reasoning is a correct explanation of the assertion. B) Both assertion and reasoning are true, but the reasoning is not a correct explanation of the assertion. C) The assertion is true, but the reasoning is false. D) Both assertion and reasoning are false.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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