3.7.5

Question 1

What is GDP?

Answer 1

The value of all goods & services produced in a country during a certain period. A measure of all the economic activity that takes place in a particular amount of time.

Question 2

What could a certain time measure of GDP be?

Answer 2

A month, 6 months, 12 months

Question 3

What is included in economic activity?

Answer 3

• Consumer spending
• Business Investment
• Government spending

Question 4

If economy is rising what happens to GDP?

Answer 4

It increases

Question 5

If economy is retracting, what happens to GDP?

Answer 5

It falls

Question 6

What is a recession?

Answer 6

When the GDP has been declining for more than 6 months

Question 7

What is income tax?

Answer 7

Money (tax) charged on income from employment.

Question 8

What is corporation tax?

Answer 8

A charge on a company’s profits AFTER all expenses have been paid.

Question 9

What do the letters GDP mean?

Answer 9

Gross Domestic Product

Question 10

What is VAT?

Answer 10

Value Added Tax

Question 11

Is income and corporation tax direct or indirect taxing?

Answer 11

Direct

Question 12

Is VAT direct or indirect taxing?

Answer 12

Indirect