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WorksheetsThe Role of Government - summary
Total questions: 12
Worksheet time: 3600secs
The Government uses which macroeconomic policy to reallocate resources and redistribute income via the budget:
Monetary Policy
Budget Deficit
Fiscal Policy
Budget Surplus
Income tax is the greatest source of government domestic revenue in the 2022-23 budget.
True
False
Taxes that cannot be passed on to another individual or organisation are called:
Progressive Tax
Goods & Services Tax
Direct Tax
Indirect Tax
Government spending includes which of the following examples:
(hint. choose 3 options)
Welfare & social security
Company tax
Education
Superannuation
Defence and police services
Examples of Government Revenue include:
(hint. choose 3 options)
Income Tax
Goods & Services Tax (GST)
Transport and Roads
Fuel Excise Tax
Recreation and culture
Why do governments intervene in the market? (hint. choose 3 options)
To increase government spending
To address a market failure
To provide a good or service that the whole community benefits from
To reallocation resources in the economy
To increase government taxation
Monetary Policy involves the Reserve Bank of Australia adjusting interest rates to stabilise low, long term economic growth. Tight Monetary Policy is used when there is unstable and high economic activity by:
increasing interest rates, increasing demand causing inflationary pressure.
increasing interest rates and decreasing demand reducing inflationary pressure.
decreasing interest rates, increasing demand causing inflationary pressure.
decreasing interest rates and decreasing demand reducing inflationary pressure.
Australian Income Tax is an example of:
Progressive Tax
(% tax increases as income increases)
Regressive Tax
(% tax decreases as income increases)
Proportional Tax (% tax stays the same)
A Government Business Enterprise (GBE) are initially managed by state and federal government and then can be sold off to the market in one of two processes. Those processes are called:
proprietorship & contractor
proprietorship & corporatisation
privatisation & contractor
privatisation & corporatisation
In the budget, if planned government revenue is greater than (>) planned government expenditure (R > E) the budget is in:
Budget Balance
Budget Surplus
Budget Deficit
Expansionary Fiscal Policy reflects a negative change in budget outcomes from the previous year to the next ie. from a budget surplus to a budget deficit. How might expansionary FP. affect aggregate demand & unemployment?
increase in A.demand & increase in unemployment
increase in A.demand & decrease in unemployment
decrease in A.demand & increase in unemployment
decrease in A.demand & decrease in unemployment
If the 2021-22 budget was in a deficit of $107billion, and the current 2022-23 budget is estimated to be a deficit of $78billion, is the fiscal stance currently:
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Neutral Fiscal Policy
