Government Spending

Question 1

What is government spending

Answer 1

Spending in wages and spending on investment goods like schools and hospitals

Question 2

Examples of current government spending and why are they called current

Answer 2

Healthcare salaries
Drugs for healthcare
Road maintenance
These are examples of one off payments as they may occur based on demand

Question 3

Examples of continuous government spending and why are they called continuous

Answer 3

New equipment for healthcare
Extra degree equipment
Construction for motorways and bridges
Flood defence schemes
These are continuous as they are usually based off of a scheduele

Question 4

What are the 3 different types of government budgets and describe them

Answer 4

Deficit budget Expenditure>budget
Balanced budget Expenditure=budget
Surplus budget Expenditure<budget

Question 5

What is privitization

Answer 5

When a publicly owned business (government owned) is sold to the private sector (non government run business)

Question 6

Sources of government spending in order

Answer 6

Social protection-benefits
Healthcare
Education
Defense (Military)

Question 7

Sources of government revenue

Answer 7

Income tax
National Insurance
Fines
Government owned businesses
VAT (Value Added Tax)

Question 8

What is national debt

Answer 8

the accumulated government debt through government borrowing when it is running a budget deficit.

Question 9

Ways to decrease national debt

Answer 9

Increase tax
Introduce a new tax

Question 10

What is the amount of tax revenue affected by

Answer 10

Tax base-the total level of income,profits and spending which can be taxed

Tax rate-percentage of how much tax is owed.