When the government must pay for fighter planes based on commitments made five years previously the spending the spending is called________________?
Correct answer: B. uncontrollable
- A. discretionary
- B. uncontrollable
- C. balanced
- D. unavoidable
Explanation
Spending required because of commitments made in earlier years is generally called uncontrollable or mandatory spending, since the government cannot freely cancel it in the current budget. Discretionary spending can instead be adjusted through current decisions.
Last updated
About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
Practise Public Finance
369 free Public Finance MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
Related questions
Raising taxes and increasing welfare payments ?
What is called the result of a state's borrowing from its population, from foreign governments or from international institutions ?
What is called the amount of non-military foreign aid which a country received ?
What is sales tax_____________?
From the sale of capital assets tax is levied on profits. What this tax is called ?