Edexcel IGCSE Business Studies 1.6.1 Government spending

Practise recognising why governments spend, how public services are funded, and how taxation can limit or support public provision.

Exam points

distinguish public services from private businesses in a multiple-choice decision
identify taxation as a way governments raise revenue for public spending

[Maximum number: 1]

Ocean Vibes is a boat tour business located in two tourists resorts in Portugal. During the tours, it collects wildlife research. The idea came from two young scientists, Alfredo and Pedro, who share a passion for the environment, boats and science. Ocean Vibes employs boat tour guides and a sales team in each of the two resorts.

The main goal of Ocean Vibes is to connect tourism with science. It offers dolphin and bird-watching tours to tourists and uses the boat tours to collect research data on the wildlife. Its tour guides are knowledgeable, passionate and respectful of the environment.

Customers can book the boat tours online or in the tourist resorts. They are encouraged to leave reviews on Ocean Vibes' website.
Every month Ocean Vibes provides a boat tour for students and researchers who wish to study the wildlife.

There are many other businesses offering boat tours in Portugal which makes competing in the industry a challenge.

Which one of the following is an example of a public service provided by the government?

Select one answer.

Clothing retailer

Police force

Mobile phone provider

Grocery store

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1.6.1 Government spending question 1