S2 Economics- Tax and Gov Spending

What is opportunity cost?

• the value of the next best option that is not selected when a choice is made.

• there is not enough of it.

• things people make to earn money.

• actions people do to earn money.

Lydia brought a salad for lunch today. Michelle is ordering pizza and asks Lydia is she would like to order. Lydia decides to eat her salad, what is her opportunity cost?

• salad

• pizza

The economic problem is that

• resources are limited and wants are limited.

• resources are unlimited and wants are limited.

• resources are limited and wants are unlimited.

• resources are unlimited and wants are unlimited.

What is scarcity? 

• Having too many resources 
• Not  having enough resources 

Which of the following does the UK spend the most money on?

• Social Protection

• education

• international affairs

• health care

What is the amount of tax-free personal allowance in 2021?

• 12500

• 15000

• 20000

• 25000

What is the current rate of VAT in the UK?

• 10%

• 15%

• 20%

• 25%

Which is not a tax in the UK?

• Capital Gains

• Climate Change Levy

• Income Tax

• Clowncil Tax