Unemployment and Government Taxes

Question 1

Extra:

Answer 1

There can also be a big problem for a businesses when there are high levels of unemployment. Less Employment means lots of disposable income. This can lead to a lack of demand for products, so sales can fall.

Question 2

What is Tax?

Answer 2

Money that goes to the government.

Question 3

What do Both Businesses and Consumer have to pay?

Answer 3

Tax

Question 4

What do Businesses have to pay tax on?

Answer 4

Their Profit

Question 5

If The amount of tax a business needs to pay increases. What happens?

Answer 5

It REDUCES the amount of money they have available to reinvest. This can lead to slow growth.