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Role of government

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is an appropriate government policy for increasing employment in an economy?

a)

introducing measures to reduce the level of spending in an economy

b)

encouraging the import of goods from overseas

c)

providing incentives and grants to new businesses

d)

reducing import taxes, leading to an influx of cheap imports

2.

The notation of social inclusion involves:

a)

taxing higher incomes at proportionately the same rate as lower incomes

b)

a welfare system that provides for the needs of all citizens

c)

government economic decisions being given priority over private decisions

d)

tax incentives that encourage hard work and enterprise

3.

Which of the following is a reason for levying taxes?

a)

to raise revenue for the government

b)

to reduce levels of inequality in society

c)

to discourage antisocial activities

d)

to finance reduced levels of government expenditure

4.

Import tax is:

a)

an indirect tax

b)

a proportional tax

c)

levied on purchases of goods

d)

paid by most wage earners

5.

A direct tax is most likely to be levied on:

a)

imports of goods

b)

the purchase of goods

c)

capital gains

d)

the sale of goods

6.

The government charges a higher percentage in tax on higher profits than on lower profits. This is an example of a:

a)

progressive tax

b)

indirect tax

c)

proportional tax

d)

regressive tax

7.

Which of the following government actions is least likely to result in an increased standard of healthcare?

a)

the building of new modern hospitals

b)

reducing expenditure per head on the health service

c)

effective planning of healthcare provision

d)

transferring money from taxes to healthcare spending

8.

Stamp duty is a tax that is levied on:

a)

the import of certain"harmful" products

b)

documents and important legal paperwork

c)

postage stamps

d)

the export of goods to another country

9.

Which of the following is a characteristic of a loan but not of a grant?

a)

interest will be charged on the sum advance

b)

the recipient will benefit from a cash advance

c)

the finance will be advanced for a specific purpose

d)

the recipient is able to spend the sum advanced

10.

The burden of a tax falls on:

a)

the collector of the tax

b)

the government that receives tax revenues

c)

the final payer of the tax

d)

the tax collection authorities

11.

(a) Outline the following responsibilities of government:

(i) security of the state

(ii) maintenance of a safe environment for investors. (4marks)

4 lines
12.

(b) Caribbean territories have limited natural resources and therefore have to plan land use. Discuss the following policies:

(i) zoning

(ii) waste disposal (6 marks)

4 lines
13.

(a) State two (2) purposes of taxation. (2 marks)

(b) Differentiate between direct and indirect taxes, using examples. (6 marks)

(c) Discuss the importance of the National Insurance Scheme to the workers of a country. (3 marks)

4 lines
14.

(a) Describe two (2) forms of assistance which are offered to business in your country. (4 marks)

(b) Outline government's responsibility of regulating business activity in terms of providing clear guidelines when establishing businesses. (2 marks)

4 lines
15.

(a) Define the term 'social services'. (2 marks)

(b) Explain how government raises revenue to finance social services. (3 marks)

(c) Discuss the impact of a recession on the following social services:

(i) healthcare

(ii) roads (6 marks)

4 lines