7543724
Description
Quiz by Joshua Dairo, updated more than 1 year ago
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Created by Joshua Dairo
almost 8 years ago
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Question 1
Question
What is Fiscal Policy?
Answer
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Involves the use of government spending, direct and indirect taxation and government borrowing to affect the level and growth of aggregate demand in the economy, output and jobs.
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Involves altering base interest rates, which ultimately determine all other interest rates in the economy, or altering the quantity of money in the economy.
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Includes any policy that improves an economy’s productive potential and its ability to produce.
Question 2
Question
Government expenditure is the sum of all spending by both local and national government
Answer
- True
- False
Question 3
Question
Indirect taxation is a type of tax which is paid for by an individual directly to the government.
Answer
- True
- False
Question 4
Question
Direct tax, which is imposed on a transaction and paid to the government by the firm after the good has been bought.
Answer
- True
- False
Question 5
Question
Tick all the correct examples of Direct Taxes
Answer
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Income Tax
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VAT
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Corporation Tax
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Landfill Tax
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National Insurance Contributions
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Student Loans
Question 6
Question
Tick all the correct examples of Indirect Taxes
Answer
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Stamp Taxes
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VAT
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Excise Duties
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Inheritance Tax
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Petroleum Revenue Tax
Question 7
Question
Balanced budget: When total government spending equals (or is greater than) government tax receipts.
Answer
- True
- False
Question 8
Question
Budget surplus an indicator of financial health in which expenditures exceed revenue.
Answer
- True
- False
Question 9
Question
What are Progressive Taxes?
Answer
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This occurs when an increase in income leads to the same % increase in tax.
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Takes a higher percentage of tax from people with higher incomes. It means that the more a person earns, the higher his average rate of tax will be.
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A tax which takes a higher percentage of tax revenue from those on low incomes. As income increases, the proportion of your income paid in tax falls.
Question 10
Question
What are Proportional Taxes
Answer
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This occurs when an increase in income leads to the same % increase in tax.
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Takes a higher percentage of tax from people with higher incomes. It means that the more a person earns, the higher his average rate of tax will be.
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A tax which takes a higher percentage of tax revenue from those on low incomes. As income increases, the proportion of your income paid in tax falls.
Question 11
Question
What are Regressive Taxes
Answer
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Takes a higher percentage of tax from people with higher incomes. It means that the more a person earns, the higher his average rate of tax will be.
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This occurs when an increase in income leads to the same % increase in tax.
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A tax which takes a higher percentage of tax revenue from those on low incomes. As income increases, the proportion of your income paid in tax falls.
Question 12
Question
"The total amount of money the British government owes to the private sector and other purchasers of UK gilts." What type of debt is this?
Answer
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UK National Debt
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Mortgagae
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Secured Debt
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