Starter quiz
- Match the terms to their correct definitions.
- inflation⇔the rate at which prices of goods and services rise over time ✓
- recession⇔a period of economic decline, often leading to increased unemployment ✓
- austerity⇔government policies aimed at reducing spending ✓
- Which of the following is a sign of a healthy economy?
- stable inflation ✓
- sharp increases in taxes
- falling consumer spending
- rising government debt
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- Fill in the blank: The UK Government takes advice on economic policy from the ______ .
- 'Bank of England' ✓
- Why might bus services be cut during a recession?
- The Government wants to discourage public transport use.
- Bus companies make more money by reducing routes.
- There are fewer people using buses during a recession.
- The Government needs to prioritise essential services with limited funds. ✓
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- Fill in the blank: One important measure of a country's economic health is its ______, which represents the total value of goods and services produced.
- 'gross domestic product' ✓
- Why does the Government aim to keep inflation low but positive?
- It ensures people never have to pay more for goods and services.
- It allows wages to stay the same over time.
- It helps prevent prices from rising too quickly or falling too much. ✓
- It keeps the cost of borrowing money high.
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Exit quiz
- What does the Budget show?
- the financial plans of private companies
- the salaries of all government employees
- how the Government generates and spends money ✓
- the value of properties owned by the monarch
- only how money is allocated across the country
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- Which of the following is not a primary way in which the Government raises money?
- printing more money ✓
- borrowing
- selling natural resources
- fines and fees
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- Which of these industries has been fully privatised in order to raise money for the UK Government?
- the police
- the NHS
- the railways ✓
- the fire service
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- Why is taxation important for government funding?
- It allows the Government to avoid borrowing.
- It only affects wealthy individuals.
- It provides the main source of income for public services. ✓
- It ensures businesses make profits.
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- Fill in the blank: The Government borrows money by issuing ______, which create national debt that must be repaid with interest.
- 'bonds' ✓
- Match the terms to their correct definitions.
- Budget⇔a yearly plan presented by the Chancellor of the Exchequer ✓
- funds⇔provides money for something, such as public services ✓
- income⇔the money the Government raises, mainly through taxation ✓
- expenditure⇔the money the Government spends on public services and other costs ✓
Worksheet
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Lesson Details
Key learning points
- The Budget is a financial framework that annually shows how the Government generates and allocates money.
- The Government funds the country through six primary revenue streams including taxation, borrowing, natural resources.
- Taxation is the main source of government revenue, with income tax, VAT and corporate levies funding public services.
- The Government incurs debt by issuing bonds, creating national liabilities that must be repaid with interest.
- Natural resources, such as oil from the North Sea, and public assets like land are sold or taxed to generate revenue.
Common misconception
The Budget just shows how money is allocated across the country.
The Budget maps all income and expenditure so it shows us what money goes where and how money is generated, not just allocated.
Keywords
Budget - the Government's yearly financial plan, showing how much money it will collect and spend on public services like healthcare, education and transport
Funds - provides money for something, for example, the Government raises and allocates money
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