WAEC 2023 Economics · Question 9
An example of government's recurrent expenditure is
Options
- A.electrification projects in rural areas
- B.the cost of building a school
- C.purchase of new vehicles
- D.paying salaries of workers
Answer: D. paying salaries of workers
Explanation written with AI and checked against the answer key
Step 1: Analyze the question The question asks for an example of recurrent expenditure. This means spending that happens regularly, again and again (monthly or yearly), to keep government running day to day.
Step 2: Explain the concept Government spending is divided into two main types:
- Recurrent expenditure: regular, routine spending on the day-to-day running of government. Examples: salaries and wages, pensions, overheads (electricity, stationery), maintenance, and interest on debts.
- Capital expenditure: spending on building or buying long-lasting assets, usually one-off or occasional. Examples: roads, bridges, schools, hospitals, power projects, and big purchases like vehicles or machinery.
Step 3: Check each option
- A. Electrification projects in rural areas: a development project that creates infrastructure. This is capital expenditure.
- B. The cost of building a school: constructing a lasting asset. This is capital expenditure.
- C. Purchase of new vehicles: buying durable assets. This is capital expenditure.
- D. Paying salaries of workers: a regular payment made every month to keep government services running. This is recurrent expenditure.
Step 4: Answer The correct option is D, paying salaries of workers.
Exam tip: Ask yourself, "Does this spending happen again and again to keep things running, or does it create a lasting asset?" If it recurs (salaries, pensions, overheads), it is recurrent. If it builds or buys something lasting (roads, schools, vehicles), it is capital. A quick memory trick is that Recurrent means Routine and Regular.
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