Define Capital expenditure

Capital expenditure: Any expenditure which will lead to formation of an asset or reduction in liability. This is financed out of capital receipts of government. Illustrations: Expenses on construction of roads, canals, bridges, grant of loans by the central government to state government.

View Complete Question

Related Questions in Microeconomics

Q : Annual total costs of production When

When Prohibition Corporation maximizes profit into its production of St. Valentine’s Day software, there annual total costs of it will be around: (1) $180 million. (2) $140 million. (3) $100 million. (4) $80 million. (5) $40 mil

Q : Marginal rate of substitution-marginal

What is the marginal rate of transformation or marginal rate of substitution or marginal opportunity cost? Answer: It is the ratio of units of one good scarified to

Q : Should third World limit pollution ‘In

‘In developing countries there are some controls on aspects of pollution like exhaust fumes. How would you evaluate whether these countries, from their point of view, must invoke legislation to enhance the atmosphere in these respects?’

Q : Small market capitalization Why would

Why would stocks perform better in the month of January than other months of the year, and discuss whether small market capitalization companies outperform large capitalization companies in the short to medium term?

Q : Moral Hazard-Unemployment compensation

Jared does not care regarding his job as he is eligible for the unemployment compensation; therefore he frequently goofs off at work and exhibits up late. This is the trouble of: (i) Adverse selection. (ii) Efficiency salaries. (iii) Moral hazard. (iv) Symmetric infor

Q : Compute price elasticity At price of

At price of Rs. 20 the unit quantity demanded is 300 units. Its price downs by 10% its quantity demanded rises by 60 units. Compute price elasticity. Answer: <

Q : Explanation of Substitution Effect The

The substitution effect helps most in describing why: (1) Demand curves slope down. (2) Goods are either complements or substitutes. (3) Air travel costs less than by walking the cross country. (4) Uncertainty regarding quality justifies govt. control

Q : Problem on facing comparable risks in

When a firm experiences an accounting profit which is less than the normal profit realized by the firms of comparable size and facing the comparable risks, the firm: (i) Has failed to compute the implicit costs. (ii) Should be facing entry barriers to the industry. (i

Q : Relatively elastic of demand in

While a price hike yields a decline within total revenue, in that case the demand faced through the producing firm: (w) relatively elastic. (x) relatively inelastic. (y) unitarily elastic. (z) inferior. Can anybody

Q : Find supply when slope of supply curve

When the slope of a supply curve which goes through the basis equals one, supply is: (w) price elastic. (x) price inelastic. (y) unitarily price elastic. (z) indeterminate like to elasticity without more information.

Discover Q & A

Leading Solution Library

Avail More Than 1435481 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1944686
Asked

3,689

Active Tutors

1435481

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment