Taxation and Government Expenditure (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What are the two main levers of fiscal policy?
What are the two main levers of fiscal policy?
Taxation and government spending
Which of the following is a direct tax?
Which of the following is a direct tax?
Corporation tax
How does an increase in corporation tax directly affect businesses?
How does an increase in corporation tax directly affect businesses?
Reduces after-tax profits
What type of cost are business rates for a company?
What type of cost are business rates for a company?
Fixed costs
How is a recession officially defined?
How is a recession officially defined?
Two consecutive quarters of negative GDP
What is the key difference between tax avoidance and tax evasion?
What is the key difference between tax avoidance and tax evasion?
Avoidance is legal; evasion is illegal
What was the largest category of UK government spending in 2014?
What was the largest category of UK government spending in 2014?
Social protection at £222 billion
Which characteristic is typical of a boom phase in the business cycle?
Which characteristic is typical of a boom phase in the business cycle?
Rapidly growing GDP and rising profits
How do customs duty increases affect UK manufacturers competing with imports?
How do customs duty increases affect UK manufacturers competing with imports?
They gain competitive advantage
Which type of goods typically suffer most during economic downturns?
Which type of goods typically suffer most during economic downturns?
Luxury goods and services