Government Intervention And The Economy

Question 1

What is the main purpose of government intervention in businesses?

Answer 1

Promote economic growth

Question 2

How does economic expansion benefit the nation?

Answer 2

It increases GDP and improves citizens’ living standards.

Question 3

How does government intervention increase tax revenue?

Answer 3

By elevating business activity and employment, increasing corporate tax, PAYE, and VAT.

Question 4

How does increased business activity lead to more employment?

Answer 4

It creates more job opportunities, reducing the need for social welfare and increasing income tax revenue.

Question 5

What types of grants are available for businesses?

Answer 5

Grants from Local Enterprise Offices and Enterprise Ireland for start-ups, expansion, and innovation.

Question 6

What is the corporate tax rate in Ireland?

Answer 6

12.5%, one of the lowest in Europe.

Question 7

How does government expenditure support businesses?

Answer 7

By investing in infrastructure, education, and technology, providing a supportive environment for businesses.

Question 8

What role does IDA Ireland play in business growth?

Answer 8

It attracts foreign direct investment, providing support and resources to multinational companies.