--%>

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.

   Related Questions in Microeconomics

  • Q : Problem on long run competitive

    The technology is such that LAC is minimized at firm’s output equivalent to 10 and minimum LAC is Rs. 15. Assume that the demand schedule for the product is given as shown:

    Q : Decreasing price of Complementary Goods

    The increase in demand for tartar sauce would be a probable result of: (1) A reduction in the price of fish. (2) An raise in the price of tartar sauce. (3) A bumper crop of the tartar sauce. (4) A raise in the price of fish. (v) The reduction in price

  • Q : Problem on unionized construction

    The passage of a significantly higher legal minimum wage would be most probable to advantage: (1) College professors. (2) American high-school dropouts in their teens. (3) Philosophy majors. (4) Unionized construction workers. (5) Foreign workers whose production is e

  • Q : Harmness of price discrimination Price

    Price discrimination generally harms: (w) all consumers and benefits firms along with market power. (x) all firms along with market power and benefits all consumers. (y) some consumers, when helping sellers and several other consumers. (z) all sellers

  • Q : Compute rate of return on interest rate

    When the rate of return you compute onto an asset exceeds the interest rate: (w) its present value exceeds its price. (x) the market is within long term equilibrium. (y) you should avoid buying the asset. (z) the price must fall quick

  • Q : Economic profit of purely competitive

    Purely competitive firms will experience economic profit, in a short-run equilibrium which is: (w) zero. (x) positive. (y) negative. (z) negative, zero, or positive are all possibilities. Hey friends please give yo

  • Q : Total sales revenues and price

    If the price falls, there total sales revenues rise, in that case the price elasticity of demand: (1) relatively elastic. (2) relatively inelastic. (3) unitary elastic. (4) zero elastic. (5) inflexibly marginal.

    Q : Interest rates on financial instruments

    Interest rates on specified financial instruments tend to be lower the: (1) shorter the period to maturity. (2) greater the risk of default. (3) less liquid is the asset. (4) greater the expected rate of inflation. (5) greater the face value is relati

  • Q : Elasticity of Demand Elasticity of

    Elasticity of Demand: The law of demand elucidates that demand will change due to a change in the price of the commodity. However it does not elucidate the rate at w

  • Q : Short run expectations Can someone help

    Can someone help me in finding out the right answer from the given options. When Toyota expected the price at which it could sell its cars to increase in the near future, it’s very short-run response would possibly be to: (i) Raise its supply. (ii) Reduce its su