Fiscal Policy Flashcards

1
Q

Define ‘equality’ in relation to income

A

Each member of society receives exactly the same income.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define ‘poverty’

A

An inability to satisfy minimal consumption needs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define ‘absolute poverty’

A

An income level which falls below the poverty line, an income level considered minimally sufficient to sustain a family.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define ‘relative poverty’

A

Compares the income of individuals in society with median incomes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

List negative consequences of poverty

A
  • Low living standards
  • Lack of access to education and healthcare
  • Higher infant, child and maternal mortality
  • Higher levels of preventable diseases
  • Social problems
  • Inability to realise one’s full potential
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define ‘transfer payments’

A

Payments made by the government to individuals specifically for the purpose of redistributing income away from certain groups and toward other groups.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Who is included in vulnerable groups?

A
  • Older people
  • Sick people
  • Very poor people
  • Children of poor families
  • Unemployed people
    ETC
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define ‘merit goods’

A

Goods that are beneficial for consumers, often with positive consumption externalities, that are underprovided by the market and underconsumed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are direct taxes?

A
  • Personal income taxes
  • Corporate income taxes
  • Wealth taxes
  • Social insurance taxes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are indirect taxes?

A
  • General expenditure taxes or sales taxes (tax ultimately paid in full by consumers)
  • Excise taxes specific goods and services (tax burden split between consumer and producer)
  • Customs duties (tariffs)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Average tax of income tax

A

Total marginal tax
_______________ x 100
Annual income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are sources of government revenue?

A
  • Sale of government owned enterprises or property
  • Sale of goods and services
  • Taxes of all types
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are types of government expenditure?

A
  • Current expenditures
  • Capital expenditures
  • Transfer payments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is budget deficit?

A

Relationship between government expenditures and tax revenues over a time period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is government debt?

A

Accumulation of deficits minus any surpluses over time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly