Economics N5 prelim revision guaranteed A

Economics N5 prelim revision guaranteed A What is public sector expendature? ️️Spending by centeral goverment, local government and public corporations What is capital expendature ️️Spending on long term projects, this helps to create productive capacity (e.g building hospitals ) What is current expendature ️️This covers day to day running costs of government (e.g the pay of public sector workers) What is a transfer payment ️️A payment to an individual or firm for which there is no economic benefit given in return ( e.g pensions) Government "golden rules "about public sector spending ️️. Borrowing should not be used to finance current spending . Accounting for capital and current spending should be separate so that it's easy to see which is which . Public sector debt , as a proportion of GDP should be kept low Reasons for public sector expendature ️️.provide public goods .provide merit goods .Provide security .provide wellfair .Redistribute income Areas of government expendature ️️Health, education , nhs,security,transport ect.... Trends in gov expenditure ️️Increase in expendature on health and education but social security spending has decreased because the ageing population has led to more spending on retirement pensions What are the 3 main areas of gov expendature ️️Social protection Health care Education What are areas of gov income ️️.interestand rents .surpluses of nationalised industries .privatisation of national industries . The national lottery What are direct taxes ? ️️Those taxes which are taken directly from individuals and firms by the government .they are sent directly to the entity who imposed it . Examples of direct tax ️️.national insurance .corporation tax .corporation tax .council tax .ect ... What is indirect taxation ️️Thèse are taxes on spending and production therefore the amount paid depends on the level of consumption and tax is not collected by government source a third party will intermediary will collect it and pass it on to the government . Examples of indirect taxation ️️.customes tax .excise duties .petrol tax .vehicle tax Ect... What are the principles of good tax ️️.certainty ) the taxpayer should be aware of how much is due and when and we're to pay . Convenience ) they should be payable at a time and place that suits the taxpayer What are the main areas of government income ️️Income tax .national insurance contributions .vat What is the defenition of demand ️️The quantity of a good or service which consumers are willing and able to buy at a particular price in a certain period of time What is the demand scedual ️️Thé relationship between price and demand can be shown in a table What is the demand curve ️️Can be drawn from the demand scedual