Fiscal Policy

Corporation Tax is a tax on

• Goods and Services

• Subsidies

• Environment

• Business Profits

Income tax is a tax on .....

VAT STANDS FOR

The current VAT rate in the UK is

• 15%

• 20%

• 17.5%

• 21%

Which 2 of the ideas list below account for why a government might create a specific tax? PICK 2

• To raise revenue for Government Projects, like Public Goods

• To address positive externalities in the market

• To address negative externalities in the market

• To help increase supply within the market

A type of tax levied on individuals who inherit the estate of a deceased person.

• payroll tax

• consumption tax

• inheritance tax

• value added tax

• income tax

Economists use the definition: "A sum of money granted by the government to assist an industry" for which of the words below?

• Subsidy

• Tax

• Extortion

• Supply

What tax people pay out of their salaries?

• capital tax

• inheritance tax

• company tax

• income tax

If the Employee Personal Allowance is £11,850 per year and the Basic tax rate up to £34,500 is 20% which of these is correct (you have 60 seconds to answer!)

• An annual salary of £11,500 will have tax of £1,150 per year

• An annual salary of £32,850 will have tax of £4,200 per year

• An annual salary of £31,850 will have tax of £4,200 per year

• An annual salary of £15,350 will have no tax in a year

What is National Insurance

• It is a tax system paid by the Government for funding state benefits

• It is a private insurance policy for Healthcare

• It is another form of sales tax like VAT

• It is a tax system paid by workers and employers for funding state benefits like the NHS