Question

Which of the following is an example of **capital expenditure**?

• A. Paying salaries to government employees.
• B. Monthly maintenance of existing infrastructure.
• C. Funding for a public awareness campaign.
• D. Construction of a new highway.

Answer 1

Answer:

D. Construction of a new highway.

• Capital expenditure involves the creation of long-term assets for the government that are expected to generate returns or services for many years, such as roads, bridges, and hospitals.