Question

The distinction between public expenditure on social services and economic services is based on:

• A. The total amount spent on each service.
• B. The impact of the expenditure on national income.
• C. The source of funds for the expenditure.
• D. The direct beneficiary of the expenditure.

Answer 1

Answer:

D. The direct beneficiary of the expenditure.

• Social services expenditure (e.g., on education, health) directly benefits individuals and households, while economic services expenditure (e.g., on power, transport, communication) provides a collective benefit to the economy as a whole.