Questions Flashcards
What is the national budget
A national budget is an annual written plan of planned expenditure and revenue for the coming year it help to achieve goals
Current expedition definition
Current expenditure: Money spent by the government on a regular or ongoing basis.
The majority of government current expenditure involves day-to-day spending on essential public services, including health, education, security,
What increase happened in current expenditure in the 2024 national budget
Increase in social welfare payments e.g pension and supporting refugees from Ukraine was given 2.5 billion
What was the opportunity cost from the national budget
Because money was given to social welfare they could have used that money to improve healthcare systems e.g new hospitals
Budget surplus definition
If planned revenue is expected to be greater than planned expenditure, the government will have a budget surplus.
Budget deficit definition
A budget deficit is when planned expenditure is higher than planned revenue
Inflation definition
Inflation is a sustained increase in the general level of prices of goods and services from one year to the next.
Impact of inflation on consumers
Inflation reduces the purchasing (buying)
power of money. Higher prices means that consumers will not be able to buy as many goods and services, which will result in a lower standard of living.
Impact of inflation for businesses
Workers may demand wage increases so that they can afford the same amount of goods and services as they did before inflation.
This is called a cost of living increase. This will increase business costs and will result in lower profits or higher prices. If the wage increase is not paid, workers may go on strike.
What is the measure on inflation
Consumer Price Index
Interest rates definition
Interest rates are the cost of borrowing money expressed as a percentage of the amount borrowed or they are the reward for money saved.
Definition for economic growth
Economic growth occurs when there is an increase in the quantity of goods and services produced in an economy from one year to the next. It is measured by year-on-year changes in GNP
National income definition
National income is the total value of all new goods and services produced within a country in a year.
Name 2 right of employees
Receive a written contract of employment
Receive at least minimum wage-fair days pay for fair days worked
Name 2 responsibilities of employees
Follow workplace rules and safety instructions
Attend all training provided by the business
