Topic 5-How the Economic System Works

Before people used money they used a system called.

• Bartering

• Monetas

• Currency

Full employment means that...

• .. everyone who is of working age is in paid employment

• .. everyone who is willing to work is in paid employment, regardless of age

• .. everyone who is able and willing to work in paid employment and is doing so

VAT is an example of a...

• variable tax

• proportionate tax

• flat rate tax

Which of the following types of income is a 12 year old most likely to receive?

• pocket money

• a pension income

• an income from earnings

Price stability is about maintaining..

• low inflation

• high interest rates

• low unemployment

What product has significantly reduced the numbers of low income families in the UK without access to a bank account?

• packaged accounts

• basic accounts

• deposit accounts

The largest contribution to the 'national purse' (the government's spending money) is made through..

• income tax and national insurance

• capital gains tax and national insurance

• capital gains tax and inheritance tax

An example of a non financial corporate organisation is..

• a high street bank

• a charity for the elderly

• car manufacturer

Disposable income is often defined as income that..

• you have prior to tax being deducted

• you have after tax and national insurance are deducted

• you have left after having paid all of your expenses

Which of the following items has no VAT charge on it?

• women's dress

• child's jumper

• man's shirt