GOV INTERVENTIONS Flashcards
1
Q
How external influences can affect a business directly and indirectly
A
direct:
- cost of raw materials and labour
- demand for product
indirect:
- disposable income
- product prices
2
Q
Fiscal policies - 2 main things
A
- Gov spending
- Taxes
3
Q
Gov spends money for…
A
- welfare benefits
- subsidies
- public services
4
Q
Direct tax
A
tax charged from personal income or from the profits made by a business
5
Q
Indirect tax
A
Tax that is added to the price of goods and taxpayers pay this tax as they purchase the goods
6
Q
Income tax
A
set percentage of tax charged on people’s income
7
Q
disposable income
A
amount of income an individual has left after all taxes have been paid
8
Q
corporation tax
A
tax on profits made by a business
9
Q
value added tax
A
added to price of goods before we buy them
10
Q
What is monetary policy about
A
a change in interest rates by gov or central bank
11
Q
interest rates affect
A
- cost of borrowing for a firm
- cost of borrowing for customers
- benefits of savings
