Each question in this quiz is timed.
What is Fiscal Policy?
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.
Involves altering base interest rates, which ultimately determine all other interest rates in the economy, or altering the quantity of money in the economy.
Includes any policy that improves an economy’s productive potential and its ability to produce.
Government expenditure is the sum of all spending by both local and national government
Indirect taxation is a type of tax which is paid for by an individual directly to the government.
Direct tax, which is imposed on a transaction and paid to the government by the firm after the good has been bought.
Tick all the correct examples of Direct Taxes
Income Tax
VAT
Corporation Tax
Landfill Tax
National Insurance Contributions
Student Loans
Tick all the correct examples of Indirect Taxes
Stamp Taxes
Excise Duties
Inheritance Tax
Petroleum Revenue Tax
Balanced budget: When total government spending equals (or is greater than) government tax receipts.
Budget surplus an indicator of financial health in which expenditures exceed revenue.
What are Progressive Taxes?
This occurs when an increase in income leads to the same % increase in tax.
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.
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.
What are Proportional Taxes
What are Regressive Taxes
"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?
UK National Debt
Mortgagae
Secured Debt
