____
Citizenship
How does the economy work?

Starter quiz

  • Which of the following areas of spending is not part of social protection?
    • disability benefits
    • pensions
    • international aid  ✓
    • housing benefits
  • When the Government spends more than it earns, it must ______ money to cover the shortfall.
    • 'borrow' ✓
  • Of those listed below, who plays the biggest role in deciding where Government money is spent?
    • the Bank of England
    • business leaders within the private sector
    • the Chancellor of the Exchequer and the Treasury  ✓
    • the public, through referendums
  • Match each economic situation to the most likely government response.
    • the economy is growing strongly
      ⇔
      increased investment in public services ✓
    • the economy is in recession
      ⇔
      lower taxes or increased government borrowing ✓
    • high inflation is causing rising prices
      ⇔
      measures to reduce spending, such as higher interest rates ✓
  • Why do some people argue for more NHS funding over other areas?
    • The NHS is free, so it does not need more money.
    • Increased NHS funding improves public health and reduces long-term costs.  ✓
    • Other sectors, like transport, are more important than healthcare.
    • The NHS currently receives the smallest share of government spending.
  • Match each tax to its main purpose or use.
    • Council Tax
      ⇔
      funds local services like waste collection and social care ✓
    • Corporation Tax
      ⇔
      paid by companies on their profits to fund public services ✓
    • Excise Duties
      ⇔
      taxes on specific products like alcohol, tobacco and fuel ✓
+