Fiscal policy | Baamboozle - Baamboozle | The Most Fun Classroom Games!

Which of these is a tool of monetary policy?

Interest rates

Welfare payments

Subsidies to firms

Income tax

What is the marginal tax rate if an individual’s annual income increases from £30 000 to £35 000?

13%

10%

50%

30%

Which of the following statements about the country’s direct tax system is true?

The system is proportional from €10 000 to €20 000 only

The system is progressive throughout the income range

The system is proportional throughout the income range

The system is regressive from between €20 000 and €30 000

Current: Tiered system of seven tax rates, the lowest being a 10% rate on taxable income between $0 - $9,275, the highest being a 39.6% rate on taxable income exceeding $415,000. Proposal: 10% on all taxable income. This proposal shows;

Progressive to Proportional

Progressive to Regressive

Regressive to Proportional

Regressive to Progressive

What is the change in the average tax rate for an individual if their annual income increases from £25 000 to £30 000?

2%

8%

10%

20%

A smartphone manufacturer sees the demand for its phone rise in response to a decision to reduce its price below that of a competitor. How can this rise in demand be shown on a diagram?

An extension along the demand curve

A contraction along the demand curve

The demand curve shifting to the left

The demand curve shifting to the right

Which of these types of government spending is an example of current expenditure?

Universal credit

New hospital equipment

Construction of a new railway line

Flood defence schemes

Which of these would be the most effective in reducing expenditure on imports?

Increased indirect taxation

Reduced interest rates

Reduced research and development subsidies for UK firms

Increased government expenditure on welfare payments

What is an example of an automatic stabiliser in response to a period of negative economic growth?

An increase in expenditure on unemployment benefits

An in increase in the income tax-free personal allowance

An increase in expenditure on education and training

A decrease in the corporation tax rate

There is a sharp rise in unemployment in the economy. What will be the likely impact if automatic stabilisers already exist in the economy?

Aggregate demand will fall by less than it otherwise would

Aggregate demand will fall by more than it otherwise would

Aggregate demand will rise faster than it otherwise would

Aggregate supply will fall faster than it otherwise would

If government spending increases significantly during a recession, it may cause a:

cyclical budget deficit

capital account surplus

structural budget deficit

current account surplus

UK government spending on the new high-speed railway line from London to Birmingham is likely, in the short run, to:

increase the budget deficit

increase the current account deficit

reduce the budget deficit

reduce the current account deficit

Which of the following is a direct tax in the UK?

Income tax

Council tax

Value added tax

Excise duty

Which of the following is an instrument of fiscal policy?

Income tax

Interest rates

Quantitative easing

Regulation

Which of the following is an example of a fiscal policy?

A change in the level of government spending

A change in the exchange rate

A change in the rate of interest

A change in the money supply

Which of the following is an example of current expenditure by government?

Salaries of National Health Service employees.

Investment in additional offshore wind farms.

Improvements to motorways to increase capacity.

Construction of aircraft carriers.

What can the government do to finance a budget deficit?

Issue government bonds

Devalue the exchange rate

Reduce the money supply

Increase export subsidies

The table below outlines the income tax rates in the UK in 2016–17. What is the average tax rate of an individual earning £46 500?

16.8%

20%

21.5%

40%

If a country’s tax receipts are $520bn and government expenditure is $540bn, which of the following best describes the state of the macroeconomy?

Budget deficit

Budget surplus

Current account deficit

Current account surplus

Which of the following is the most likely explanation of what is shown in the diagram above?

An increase in the basic rate of income tax

An improvement in the availability and affordability of chil

A reduction in the interest rate

Research & development subsidies

What does the Laffer Curve show?

The correlation between the tax rate and tax revenue changes

Tax revenue will remain constant as the tax rate increases.

There is a negative correlation between the tax rate and tax

There is a positive correlation between the tax rate and tax

Between 1990 and 1992, UK citizens were charged a Community Charge commonly known as the poll tax – a single flat-rate per capita tax on every adult at a rate set by the local authority. What type of tax was this?

Regressive

Indirect

Progressive

Proportional