What is not included in public expenditure? When is the budget described as balanced? The government wishes to increase economic growth in its economy. What would not be likely to achieve this aim? The government redistributes income more evenly. What is most likely to increase? A government increased revenue by increasing taxes on firms. Which tax did it increase? What is the main aim of supply-side policy? What will the government increase in a contractionary fiscal policy to reduce inflation? Which measure would indicate that an expansionary fiscal policy is being used by the government? The diagram shows how a government policy influences the market for biofuel crops in the private sector. According to the diagram, which policy does the government use and what effect does it have on the market? The table shows the tax that an individual would pay at different levels of disposable income. Which type of tax is shown in the table? The government wants to reduce the consumption of cigarettes. Which policy would be most likely to do this? The table shows the rates of unemployment and real GDP growth for an economy in 2014 and 2018. Which combination of policy measures would be most effective in returning the economy to the 2014 level of economic activity? A government decreased the tax on all goods produced in its country. What is the most likely consequence of this? Which government policy measure would cause an increase in a country’s supply of labour? Due to a rise in the number of retired people, there has been increased demand for some government expenditure. Which type of government expenditure is most likely to be directly affected? What is included in a government’s budget? A country has rapidly increasing inflation. What is an example of a monetary policy measure to reduce this problem? The diagram shows selected areas of government spending for a country. What was the total government spending on merit goods? Tax is charged at 1.45% on all wages earned to pay for basic medical provision. How would this tax be described? Interest rates are sometimes raised to control inflation. Why might this policy be effective? A government’s revenue grew 8 % to $3.25 trillion. Its expenditure was reduced to $3.69 trillion. What can be concluded from this? What is a fiscal policy measure? A government uses expansionary monetary policy. What does the government decrease? A country is experiencing unemployment. It has a progressive income tax policy and benefits for the poor. The government aims to increase employment and reduce income inequality. Which fiscal policy measures are most likely to achieve these aims? What is fiscal policy? What is the money supply? The table shows sources of government revenue for an economy. What is the total amount of tax revenue raised by direct taxes? The table shows a government's receipts from taxation. What is the total amount of revenue raised by indirect taxes? Which statement about supply-side policy is correct? The table shows a government’s receipts from taxation. What is the total amount of revenue raised by indirect taxes? Which supply-side policy measure would help to match the skills of workers to job vacancies? Which statement relating to supply-side policies is correct? A government uses different supply-side policy measures to improve economic performance. Which policy measure would not satisfy one of the government’s macroeconomic aims? What is an example of a fiscal policy measure? Why would an increase in the interest rate potentially lead to lower inflation? Which government action will not add directly to the quantity or quality of human resources? What is the likely outcome of an expansionary monetary policy? The table shows taxes as a percentage of Gross Domestic Product (GDP) for four countries. From this information, which country had the highest percentage of direct taxation as a percentage of GDP?