Economics - 0455 CIE

Fiscal Policy (continued)

Gbogbo ọrọ náà

Tax is how a government raises the money to run a country, but it does far more than fill the treasury. The right tax can curb smoking, protect the environment, narrow the gap between rich and poor, or steer the whole economy. The wrong one can hit the poor hardest.

In this lesson you will learn why governments tax, how taxes are classified (progressive, regressive, proportional; direct, indirect), and how changing taxes and spending (fiscal policy) helps a government meet its macroeconomic aims. By the end you will be able to judge who really pays and why.

Ebumnobi

  1. reasons for taxation: raising revenue, discouraging consumption of demerit goods, reducing imports, redistributing income, influencing total demand, encouraging environmental sustainability
  2. examples of the different classifications of tax: progressive, regressive, proportional; direct, indirect
  3. impact of taxation on consumers, workers, producers/firms, the government and the economy
  4. changes in: - taxes - government spending
  5. how fiscal policy measures may enable a government to achieve its macroeconomic aims

Nkuzi Olu

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Maapụ uche

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Kaadị ncheta

Omume ncheta ngwa ngwa n'ihe a na-anwale n'isiokwu a.

Mee omume kaadị ndị a na ngwa

Akwụkwọ Ọmụmụ

Fiscal policy, the use of government spending and taxation, is one of the two main levers a government pulls to manage the economy. Tax choices decide who pays, what behaviour is discouraged and how income is shared. Examiners test whether you can explain the reasons for tax, classify taxes correctly and link fiscal changes to aims like growth and low unemployment.

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Nnyocha Ọmụmụ

Ekele diri gi maka imecha ihe karịrị na Fiscal Policy (continued). Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.

Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.

Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.

  1. A progressive tax is one where, as income rises, the: A. amount paid falls B. tax rate (percentage) rises C. tax rate falls D. tax rate stays the same Answer: B
  2. Which of the following is an indirect tax? A. income tax B. corporation tax C. value added tax (VAT) on goods D. a tax on wealth Answer: C
  3. A fixed-sum charge that is the same for everyone is an example of a: A. progressive tax B. proportional tax C. regressive tax D. direct tax Answer: C
  4. Expansionary fiscal policy to reduce unemployment involves: A. higher taxes and lower spending B. lower taxes and/or higher government spending C. higher interest rates D. reducing the money supply Answer: B
  5. Taxing tobacco heavily is mainly intended to: A. increase imports B. discourage consumption of a demerit good C. make the tax system regressive D. reduce government revenue Answer: B

Rue ajuju ndi a n'ime ngwa ahu

Rue ajuju ndi a n'ime ngwa ahu

Meecha Ajụjụ Ule Ọmarịcha

Ị chọrọ ime ajụjụ ule ọmarịcha gbasara Fiscal Policy (continued)? Budata ngwa Green Bridge CBT iji nweta ajụjụ ule ọmarịcha na nyocha zuru ezu gbasara isiokwu a.

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