The Principle of Public Expenditure That Requires That Government Should

question 18

Multiple Choice

The principle of public expenditure that requires that Government should avoid shortfall of revenue in comparison with its expenditure is termed as

• A)canon of deficit
• B)canon of surplus
• C)canon of elasticity
• D)canon of sanction

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Definitions:

Total Cost Curves

A graphical representation showing how the total cost of production changes with the level of output, typically upward sloping due to rising production costs.

Extraction Cost

The expenses associated with removing natural resources from the earth, such as mining or drilling.

User Cost

The cost of utilizing a good or service, considering the opportunity cost of not using the asset in an alternative way.