What is taxation?

• Taxation is when governments finance their expenditure by charging a percentage from individual citizens income and business profits.

• When you text your best friend .

• When governments give a percentage of business profits to citizens.

• When businesses take a percentage of expenditure from governments.

Governments use taxation to.........

• encourage or discourage certain economic decisions.

• use the money generated from individuals and businesses to run the country.

• for providing public services such as schools, hospitals, policing etc.

• All of the above.

What Is Fiscal Policy?

• The finance department.

• a policy to monitor exchange rates.

• When a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.

• a law set by the government.

What is monetary policy?

• Something to do with money.

• A policy that allows central banks to influences a nation's money supply through interest rates.

• A policy that allows central banks to influences a nation's money supply through exchange rates.

• A policy that allows governments to influences a nation's money supply through interest rates.

What are the constraints on public spending?

• Public sector organisations that supply services directly may get funding cuts.

• Cuts in pensions and other government payments may affect consumer spending

• Answer 1 and 2

• Neither

How can governments affect business activity?

• By buying shares in the business.

• By becoming a Plc.

• By changing laws and regulations.

Government affect on business activity by?

• Infrastructure provision

• Legislation

• Competition policies

• Environmental legislation

• None of the above

Define Trade Policy?

• Doing business with another company.

• Refund and Exchange for customers.

• Trade policy refers to the regulations and agreements that control imports and exports to foreign countries.

Define protectionism

• Protecting yourself as a business

• Protecting your customers from competition

• They protect jobs, infant industries and dumping from other countries through international trade.

• Protecting goods and services.

Which of these are trade barriers?

• Tariffs

• Quota

• Subsidy

• Administrative barriers

• Combo