FISCAL POLICY Says HELLO

Hufflepuff

200

Fiscal policy refers to 

use of government spending and taxes to stabilize the economy

300

Two FISCAL tools government uses to alter the state of the economy?

Spending and revenue

400

corporate tax- 5000, excise duty- 3000, health and education- 4000

Deficit or Surplus?

Surplus

500

How do banks make money? 

We shall soon find out?

Ravenclaw

200

Economy is in recession, cutting taxes is not an option. what should government do? 

increase the spending 

300

Income left after paying taxes?

Disposable income

400

Amount paid to government school teachers?

C/I/G1/G2/X/M

G1

500

Two tools government uses to correct the economy?

Monetary and Fiscal policy.

Slytherin

200

economy is facing inflation and decreasing spending is not an option, what would you have government do?

increase tax rates.

300

The tax companies pay on their earnings?

Corporate tax

400

Purpose of Fiscal Policy?

Maintain stable prices

500

What is a reserve requirement?

we shall soon find out

Gryffindor

200

Which option would stimulate economy more? A 10b tax cut or 10b worth of spending increase? 

10B increase in spending

300

Revenue - 120B

Spending - 185B

Deficit or Surplus

Deficit

400

what is an excise duty?

tax imposed on selected locally produced goods such as petrol, LPG, beer, spirits, wine and tobacco. 

500

Difference between a quota and tariffs? 

quota: limits on the amount of imports allowed 

tariff: taxes on imported goods collected by the government.