--%>

Revenue expenditure

Why payment of interest is treated as revenue expenditure?

Answer: Since it does not cause any decrease in the liability of government.

   Related Questions in Microeconomics

  • Q : Heterodox perspective One of my friend

    One of my friend can't find the answer of this question.Give me answer of this question. From a heterodox perspective, the household is rarely indifferent while considering the profit of two bundles of goods.Why?

  • Q : Policies of wage discrimination Can

    Can someone help me in finding out the right answer from the given options. Both level of employment through a firm and the average rate of monopsonistic exploitation of labor are raised when a firm is capable to: (1) Outsource through hiring less productive workers i

  • Q : Immunity of Corporate giants in market

    Can someone help me in finding out the most precise answer from the given options. The Corporate giants are not immune to the market pressures since: (i) They experience the diseconomies of scale. (ii) Advertising decreases the barriers to entry. (iii) Profits give an

  • Q : Case study on Microeconomics Hello, I

    Hello, I did attach case study on Microeconomics. Regards,

  • Q : Define production function Production

    Production function: This refers to the functional relationship among inputs and outputs.

  • Q : Microeconomics Question #2 Consumer

    Question #2 Consumer Demand. How to answer questions from a-g iii. I belive the MRS is 2y/x for B. But not sure

  • Q : Derived Demand for resources I have a

    I have a problem in economics on Derived Demand for resources. Please help me in the following question. As demands for the resources ultimately based on consumer’s demands for goods then the demand for labor is: (1) Termed as a derived demand.

  • Q : Annual economic profit of production

    When point e corresponds to $18 per copy for St. Valentine’s Day software, so Prohibition Corporation can produce annual economic profit of at most just about: (i) $100 million. (ii) $140 million. (iii) $200 million. (iv) $300 million. (v) $400

  • Q : Comparison of competitive and

    If compared to competitive advertising, in that case informative advertising tends to: (1) help consumers make more satisfying choices. (2) be a waste of resources. (3) increase transaction costs. (4) be less efficient than competitiv

  • Q : Condition of shut down of firm in long

    I have a problem in economics on Condition of shut down of firm in long run. Please help me in the following question. Any of the firm will shut down in long run if its: (i) Economic gain doesn’t surpass zero. (ii) Future revenues are not predic