Quiz - Worksheets - Government Policy - External Environment - Business bank - Virtual Bank of Biz/ed

External environment - Government policy

Quiz - Getting fiscal with money - fiscal, monetary and supply-side policy

1. Fill in the blanks below to give a description of fiscal, monetary and supply-side policy.
(Type your answers)


2. Identify each of the following policies as either fiscal, monetary or supply-side.

  • Corporation tax cuts

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

   

  • The introduction of a voucher scheme for all parents to increase the level of competition among schools

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

   

  • Increased government spending on research and development
    (Select one or more answers)

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

       

  • Cutting unemployment benefits to encourage the unemployed to look for work quicker

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

   

  • A cut in the official interest rate

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

   

  • An increase in the income tax personal allowance

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

   

  • The publication of money supply targets

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

   

  • Capital investment allowances for firms
    (Select one or more answers)

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

       

  • A reduction in the number of regulations that firms have to comply with for health and safety

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

   

  • An increase in tobacco tax

(a) * Fiscal
(b) * Monetary
(c) * Supply-side

   

3. How many members are there of the Monetary Policy Committee (MPC) of the Bank of England?
(Type your answer in figures)

 *

   
4. How many of these MPC members are internal members from the Bank of England?
(Type your answer in figures)

 *

   
5. How many are externally appointed by the Chancellor of the Exchequer?
(Type your answer in figures)

 *

   
6. Which of the following would be considered a reflationary fiscal policy?

(a) * An increase in the rate of income tax
(b) * A decrease in the interest rate
(c) * An increase in government spending on health care
(d) * A decrease in tax allowances