Practise analysing fiscal policy through budgets, tax, spending, debt and AD/AS effects in data tables and policy scenarios.
A government spends money to provide an education for students.
Which type of spending is capital expenditure?
computers for classrooms
grants for university students
rent for school buildings
wages for teachers
The table shows government spending and revenue over a three-year period.
What can be concluded from the data?
A budget surplus becomes a budget deficit in year 3 .
National debt is likely to be falling by the end of year 3 .
The current account balance is in equilibrium in year 2 .
The economy is at full employment equilibrium in year 2.
What is the most likely consequence when there is an increase in the national debt?
the creation of additional money
a current account deficit on the balance of payments
a surplus in the government's budget
the crowding out of private sector investment
A worker earns $ 10000 and pays $ 1000 in income tax.
Another worker earns $ 30000 and pays $ 4500 in income tax.
A third worker earns $ 150000 and pays $ 50000 in income tax.
Which type of tax is this?
indirect
progressive
proportional
regressive
Which policy's principal aim is to ensure sound public finances?
environmental policy
fiscal policy
monetary policy
supply-side policy
