Garantie de satisfaction à 100% Disponible immédiatement après paiement En ligne et en PDF Tu n'es attaché à rien
logo-home
The Role of the Government $6.35
Ajouter au panier

Notes de cours

The Role of the Government

2 revues
 0 fois vendu
  • Cours
  • Établissement

A look at the role of the government including, intervention, types of government policy, the government's 5 main objective. A look at fiscal policy specifically expansionary fiscal policy and contractionary fiscal polixy. The impact of different taxes and duty on business. A look at monetary poli...

[Montrer plus]

Aperçu 1 sur 3  pages

  • 30 juin 2016
  • 3
  • 2014/2015
  • Notes de cours
  • Inconnu
  • Toutes les classes

2  revues

review-writer-avatar

Par: michealmcnulty241 • 8 mois de cela

review-writer-avatar

Par: ciarahunt • 7 année de cela

avatar-seller
The Role of Government

Intervention:
Government Policies to Achieve Objectives:
 Three types of economic systems:
1. Planned/command - govt. complete control of economy.  Fiscal policy - taxation + spending.
 No private enterprise i.e. all public sector e.g. N.Korea.  Monetary policy - IR + money
2. Market Economy: Less govt. intervention, mainly all private supply.
sector e.g. USA.  Supply side policy.
3. Mixed - Both public + private sector e.g. UK.

Government Objectives:

 UK Govt. 5 main objectives:  BOP - (Balance of Payments): Records the
1. Continuous, stable economic growth - 2% pa. monies coming in + out of the country. A deficit
2. Sustainable development - environmental exist when import values > export values.
protection whilst pursuing economic growth.  Tourist import - results in money leaving the
3. Low inflation CPI = 2%. country.
4. Low unemployment.  Tourist export - results in money coming into
5. Balance of payments equilibrium or low BOP deficit. the country.

Fiscal Policy:

 A fiscal policy is when the government will change taxation and/or own spending in order to change the level of
economic activity. There are two types:
1. Expansionary fiscal policy - tax is cut or increased spending on services i.e. health, education, transport,
defence etc. Total spending from the govt. will rise benefiting businesses and the economy.
2. A contractionary fiscal policy is when expenditure is reduced or tax is raised. This reduces spending in the
economy in order to cool it down.
 Tax + expenditure - immediate effect activity but extent depends on type of tax + nature of govt. spending.
 Direct Tax = income tax, corporation tax - implications for businesses depend on product type e.g. luxury goods
- significant effect.
 Indirect Tax - VAT, increase = reduced consumer spending extent fall will depend on the price elasticity of
product. Side effect of rise = inflationary.

Method Impact on Business Evaluation
Lower Basic Rate of  Increased consumer disposable income -  Impact will depend on what is happening -
Income Tax (E.F.P.) increased demand. interest rates + wages increases.
 Increased worker motivation - pay rise -  Are workers really motivated by a small
encourage overtime + promotion - extra effort reduction. Higher rate of tax was not cut +
now rewarded. increase number of income earners now pay tax.
Lower Corporation  Increases profits after tax - used to pay higher  Company profits fell due to credit crisis, lower
Tax (E.F.P.) dividends, increasing investment in company corporation tax - limited impact in ST.
from retained profits.  Corporation tax rate much lower in other
 Lower corporation tax - encourage more countries e.g. Ireland + Poland.
businesses to set up.
Higher Fuel Duty  Higher transport costs - cost push inflation.  Firms more affected by road haulage costs than
(C.F.P.)  Higher inflation - tax increases = higher wage others.
rises - cost push inflation.  Tax increases - small impact on inflation
compared with higher costs caused by world oil
+ food prices + £ depreciation = raised import
prices.
High Alcohol Duty  Reduce spending in pubs - consumers prefer  Demand - price inelastic.
(C.F.P.) cheaper home drinks
Increased Spending  Increased demand for construction company  Occurred - downturn in commercial property
(E.F.P.) services. demand - construction companies fewer orders.
 Improvement in quality + educational standards  Expansion higher education take several years
of labour force - help productivity. before benefits received.
Increased  Government spending - more in economy than  Government borrowing - interest rates stay
Government Budget is taking in taxes + increase economic growth. higher so Bank of England - finance deficit.
Deficit (E.F.P.)  Increased deficit will boost demand + output in
economy by raising government spending above
tax revenues.

Les avantages d'acheter des résumés chez Stuvia:

Qualité garantie par les avis des clients

Qualité garantie par les avis des clients

Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.

L’achat facile et rapide

L’achat facile et rapide

Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.

Focus sur l’essentiel

Focus sur l’essentiel

Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.

Foire aux questions

Qu'est-ce que j'obtiens en achetant ce document ?

Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.

Garantie de remboursement : comment ça marche ?

Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.

Auprès de qui est-ce que j'achète ce résumé ?

Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur MarkC57. Stuvia facilite les paiements au vendeur.

Est-ce que j'aurai un abonnement?

Non, vous n'achetez ce résumé que pour $6.35. Vous n'êtes lié à rien après votre achat.

Peut-on faire confiance à Stuvia ?

4.6 étoiles sur Google & Trustpilot (+1000 avis)

75341 résumés ont été vendus ces 30 derniers jours

Fondée en 2010, la référence pour acheter des résumés depuis déjà 15 ans

Commencez à vendre!

Récemment vu par vous


$6.35
  • (2)
Ajouter au panier
Ajouté