Section 9

Question 1

What are the responsibilites of the goverment in the economy

Answer 1

Security of the State
Protection and General Welfare of Citizens
Job Security and severance benefits
Protection of The Environment

Question 2

What are the purposes of taxation

Answer 2

To curb inflation by reducing money supply
To remove competition from local goods to protect them by increasing tax on imported goods
To increase consumption of local goods and encourage local linkages
To finance goverment expenditure
To achieve greater equality in the distribution of wealth and income by taxing the higher income earners

Question 3

What are direct taxes and give two examples

Answer 3

Direct taxes are taxes where the burden of the taxes and the payments of them fall on the same individual. It is usually taxed to income and capital and is paid by individuals. (Income Tax,Corporation Tax)

Question 4

What are indirect taxes and give two examples

Answer 4

Indirect taxes are taxes in which the burden of the taxes and payment of the taxes fall on different individuals. It is usually levied on goods and services and is mainly paid by importers and manufacturers. (Custom Duty,VAT)

Question 5

What are the social services provided by the government

Answer 5

Healthcare-Public Hospitals,Clinics
Education-An educated population is more capable of entreupenurial activity
National Insurance and Social Security- Payments are deducted while working and received after retirement
Roads-Maintenance of roads and highways and the creation of new ones
Transportation-Free transportation for all school children and elderly

Question 6

How can the government assist businesses

Answer 6

Providing an environment conducive to economic growth
Promotion and maintenance of competitive markets
Subsidies and Grants
Trade Promotions