Fiscal Policy

Question 1

Fiscal policy

Answer 1

A policy that aims to control the economy through the government

Question 2

Monetary policy

Answer 2

a policy that aims to control the total supply of money in the economy to try to achieve

Question 3

Supply side policy

Answer 3

Any policy that helps to increase a country productive potential

Question 4

Externality

Answer 4

The impact of an economic transaction on a third party

Question 5

Positive externality

Answer 5

The benefit of an economy transaction for a third party

Question 6

Negative externality

Answer 6

The cost of an economic transaction for a 3rd party

Question 7

Taxation

Answer 7

Government collection of money from individuals and firms

Question 8

Indirect tax

Answer 8

A tax raised in spending on goods and services

Question 9

Subsides

Answer 9

A sum of money given by the government to firms to encourage production and consumption

Question 10

State provision

Answer 10

Government intervention in a market to supply a good or service direct to consumers

Question 11

Legalisation

Answer 11

A law created to control the way individuals or firms behave

Question 12

Regulation

Answer 12

A rule from the government that firms and consumers have to follow

Question 13

Information provision

Answer 13

Government intervention in a market to give knowledge that might change behaviour