Government and the Economy

The government is involved in the economy for a number of reasons

• Regulate the economy

• Create jobs and collect taxes

• Support enterprise

• Stop individuals opening businesses

The governments main sources of income is?

• Taxation

• Bus Eireann fares

• Donations

• Fundraising

Which 3 does a person working as a teacher get deducted from their wage?

• PAYE

• USC

• Corporation tax

• PRSI

Corporation tax is tax on _______ _______

• Company wages

• Company profits

• Company loss

• Company shares

Other sources of government revenue

• Privatisation

• Dividends

• EU funds

• Fundraisers

An example of government current income

• Taxation

• EU Funds

• Child benefit

• LUAS extension

If I go into a shop and have €2, I buy a twix bar but could have bought a mars bar instead. Which is the opportunity cost?

• Twix

• Mars

• Both

• None

An example of government capital income is ?

• Taxation

• Privatisation

• Paying nurses wages

• Building schools

An example of government capital expenditure is?

• Dividends

• EU funds

• Child benefit

• Building hospital

What department prepare the National budget?

• Department of Health

• Department of Finance

• Department of Education

• Department of Social Protection