Government Policy and the Economy (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
Which of these is an example of a direct tax?
Which of these is an example of a direct tax?
Income tax
What happens to consumer spending when income tax rates are high?
What happens to consumer spending when income tax rates are high?
It decreases due to less disposable income
Why do businesses in southern England typically pay higher business rates?
Why do businesses in southern England typically pay higher business rates?
Property values are higher in the South
Which products are more affected by income tax rises?
Which products are more affected by income tax rises?
Luxury goods like expensive appliances
What are the two main components of fiscal policy?
What are the two main components of fiscal policy?
Tax rates and government spending
What is the long-term effect of raising VAT?
What is the long-term effect of raising VAT?
It can cause deflation
When is expansionary fiscal policy used?
When is expansionary fiscal policy used?
During economic slowdowns
Who sets interest rates in the UK?
Who sets interest rates in the UK?
The Bank of England
What happens to the exchange rate when interest rates are high?
What happens to the exchange rate when interest rates are high?
The pound strengthens and rises
Which are methods of protectionism?
Which are methods of protectionism?
Subsidies, tariffs, and quotas