Public Expenditure
ICSE · Class 10 · Economics
Most important questions from Public Expenditure for ICSE Class 10 Economics board exam 2026. MCQs, short answer, and long answer questions with marks.
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Which of the following are main objectives of public expenditure?
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Ensure internal peace and security, Economic development, Social welfare
Government spends to maintain security, promote economic development, and ensure social welfare. Personal profit and private benefits are not government objectives.
Which expenditures promote economic development?
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Transport development, Communication systems, Education and health
Developmental expenditure includes transport, communication, education, and health as they directly contribute to economic growth and human capital formation.
Productive expenditure helps in:
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Improving productive capacity
Productive expenditure is investment-like spending that enhances the economy's productive capacity through physical assets and human capital development.
Wagner's Law states that there is a tendency of:
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Increasing state activities
Wagner's Law indicates persistent tendency towards extensive and intensive increase in state functions, leading to growing public expenditure.
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