U1 Topic 1 Quiz

Giving to charity is seen as a positive contribution to society and is rewarded through:

• higher pay

• lower National Insurance contributions

• tax schemes and incentives

A deficit budget is when the amount the government spends is:

• lower than the amount it receives

• more than the amount it receives

• equal to the amount it receives

Fiscal policy is:

• how much the government decides to spend and the tax rates it sets

• how much the Bank of England decides to spend and the tax rates it sets

• how much Her Majesty's Revenue and Customs (HMRC) decides to spend and the tax rates it sets

The largest proportion of the government's budget is spent on:

• education

• pensions

• health

High interest rates are good news for:

• those shopping around for a car loan

• those who already have a mortgage

• those who have savings in deposit accounts

During an economic boom:

• debts tend to be high and unemployment tends to be low

• both debts and unemployment tend to be low

• debts tend to be low and unemployment tends to be high

Government policy during recessions may focus on stimulating the economy by:

• raising public expenditure

• reducing public expenditure

• raising interest rates

Disposable income is the money that:

• you have left over after paying all bills and putting aside money in savings

• you have left over after paying tax and National Insurance contributions

• you have to pay out every month for vital services such as power and water

An example of financial planning includes:

• using your overdraft to help pay your bills at the end of each month

• expecting to rely on state benefits when you are unable to work

• regularly contributing to a pension plan so that you have a comfortable retirement

In times of austerity people cannot afford to spend much money.

• True

• False