government objectives and policies Flashcards
1
Q
what 2 policies do governments create
A
fiscal and monetary policy
2
Q
what 2 things does fiscal policy deal with
A
taxes and spending
3
Q
what 2 things does monetary policy deal with
A
interest and money supply
4
Q
there are 2 types of taxes what are they
A
direct and indirect taxes
5
Q
name the 2 types of direct taxes
A
income and corporate tax
6
Q
indirect taxes are
A
value added tax (VAT)
7
Q
income taxes are
A
the government taxing your personal income
8
Q
corporation taxes are
A
the government taxing a companies profits
9
Q
what are dividends
A
the profit shared between shareholders
10
Q
what is a subsidy
A
when a government helps businesses by giving them money to stop them from overpricing essential products
