Public Expenditure and Taxation (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What distinguishes capital investment from current expenditure in government spending?
What distinguishes capital investment from current expenditure in government spending?
Capital creates assets; current covers running costs
What is the key characteristic of transfer payments?
What is the key characteristic of transfer payments?
They do not directly contribute to national output
In 2021/22, what percentage of UK government spending was on social protection?
In 2021/22, what percentage of UK government spending was on social protection?
28.7%
Under the triple lock, state pensions increase each year by whichever is highest out of three factors. Which?
Under the triple lock, state pensions increase each year by whichever is highest out of three factors. Which?
Wage increases, CPI inflation, or 2.5%
What defines a direct tax?
What defines a direct tax?
Cannot be shifted to someone else
Why is cigarette duty considered regressive?
Why is cigarette duty considered regressive?
It takes a larger % of income from low earners
Which principle states a tax should be based on the taxpayer's ability to pay?
Which principle states a tax should be based on the taxpayer's ability to pay?
Equity
In a progressive tax system, what is the relationship between marginal and average tax rates?
In a progressive tax system, what is the relationship between marginal and average tax rates?
Marginal rate exceeds average rate
What is the key difference between tax evasion and tax avoidance?
What is the key difference between tax evasion and tax avoidance?
Evasion is illegal; avoidance is legal
What type of tax is VAT?
What type of tax is VAT?
Ad valorem tax (percentage tax)