Starter quiz
- What does high national debt not lead to?
- lower interest rates ✓
- increased taxes
- rising costs for essentials
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- Why is careful management of national debt needed?
- to increase the amount of debt
- to ensure economic stability ✓
- to increase taxes for citizens
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- Match the word to the correct definition.
- national debt⇔amount of money owed by the Government that affects the economy ✓
- borrower⇔a person, business or government that takes money from a lender ✓
- risk⇔the chance of something going wrong ✓
- Complete the sentence: The UK Government borrows to manage national debt by raising ______ and adjusting public spending.
- 'taxes' ✓
- What supports public spending, infrastructure and economic stability during crises?
- public health planning
- increasing taxes
- borrowing ✓
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- Complete the sentence: If debt is too high, __________ measures may be used, meaning cuts to services like education and healthcare.
- austerity ✓
- financial
- cautionary
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Exit quiz
- What action taken by citizens does not contribute to economic stability?
- ignoring financial decisions ✓
- responsible spending
- skill development
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- Match the word to the correct definition.
- economy⇔state of a country/region in terms of consumption and supply of money ✓
- Income Tax⇔tax on earnings collected by Government to fund public services ✓
- borrowing⇔receiving money from a lender with the agreement to repay it later ✓
- The economy influences employment opportunities, ______ levels, public services and living costs, affecting everyone.
- 'income' ✓
- What effect does inflation have on money?
- It increases the value of money.
- It diminishes the value of money. ✓
- It has no effect on the value of money.
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- Which word would complete this sentence? Strategic __________ in emerging sectors like renewable energy can encourage economic expansion.
- contributions
- taxation
- investments ✓
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- What helps maintain economic stability despite inflation?
- careful consumer behaviour ✓
- excessive/unethical spending
- ignoring financial management
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Worksheet
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Lesson Details
Key learning points
- The economy influences employment opportunities, income levels, public services and living costs, affecting everyone.
- Citizens contribute to economic stability through responsible spending, taxation and skill development.
- Active citizens get involved in economic policy decisions, support local enterprises and practise financial management.
- Inflation diminishes the value of money, but prudent consumer behaviour helps maintain economic stability.
- Strategic investments in emerging sectors such as renewable energy encourage sustainable economic expansion and jobs.
Common misconception
The economy is entirely controlled by the UK Government and that individuals have little to no influence over it.
While the Government plays a significant role through policies, taxation and public spending, individual citizens also shape the economy through their financial decisions, employment and consumer behaviour.
Keywords
Economy - the state of a country or region in terms of the production and consumption of goods and services and the supply of money
Inflation - the rate at which the general level of prices for goods and services rises, causing the purchasing power of money to fall
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