Governemet objectives and policies

Question 1

Fiscal policy

Answer 1

Using changes in taxation and government expenditure to mange the economy

Question 1

Social security payments

Answer 1

Money taken by British government from people income to fund the unemployed and the society

Question 2

Lay off

Answer 2

Make emoloyees redundant

Question 3

Anti competitive practice

Answer 3

Attempts by firms to restrict competition

Question 4

Barriers to entry

Answer 4

Obstacles that prevent a firm from entering the market

Question 5

Merger

Answer 5

2 or more firms integrating to form as a single firm

Question 6

Protectionism

Answer 6

Use of trade barriers to protect domestic producers

Question 8

Infant industries

Answer 8

New industries yet to be established

Question 9

Dumping

Answer 9

Where a business sell goods in another country often below the cost

Question 10

Quota

Answer 10

Physical limit on the quantity of imports allowed

Question 11

Subsidy

Answer 11

Financial support given to a domestic producer by the government in which they do not require back

Question 12

Interest rates

Answer 12

Price of borrowed money and the reward to savers

Question 13

Monetary policy

Answer 13

Using changes in interest rates and the money supply to manage the economy

Question 14

Budgetary measure

Answer 14

Action taken by government to influence the business and the economy