Edexcel IGCSE Economics 2.1.2.a fiscal policy
Practise fiscal-policy questions by calculating fiscal balances, classifying taxes and explaining spending or borrowing effects.
- Syllabus
- First assessment 2019
- Course
- Economics 4EC1
Exam points
- Calculate fiscal deficits or surpluses from government revenue and expenditure data.
- Classify direct and indirect taxes from tables of government receipts.
- Explain impacts of deficits, surpluses or public spending on services and borrowing.
2.1.2.a Fiscal policy – government revenue and government question 1
[Maximum number: 3]
In December 2023, Portugal reported a fiscal surplus of €6.2bn, which was €3.4bn higher than 12 months before.
Explain one possible benefit of a fiscal surplus for a country such as Portugal.
AO2 3 marks
Award 1 mark for identifying a relevant benefit
Award 1 mark for developing the benefit
Award 1 mark for the response being in context
- One benefit is that Portugal can spend more money on public services (1). Investing more in these sectors can lead to better schools and hospitals (1) therefore improving the quality of life for its citizens. (1)
Accept any other appropriate response
(3)
Question
Number
With reference to the data above and your knowledge of economics, analyse the impact of a recovery on unemployment for a country such as Greece.
Mark
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