Chapter 12 Government Objectives Policies

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Draggable item		Corresponding Item
Infrastructure		This is the amount of money spent on public services e.g. health, education, defence, policing
Barriers to entry		The government raises revenue from taxes VAT, corporation, income
Subsidy		Using changes in taxation and government expenditure to manage the economy
Government spending		The government is responsible for building roads, bridges, railways, power generators, schools, hospitals,
Trade barriers		Restrictive trade practices attempt by firms to prevent or restrict competition
Monetary policy		Restrictions that mean it is difficult for new firms to enter a market
Fiscal policy		Use of trade barriers to protect domestic producers
Interest		New industries that are yet to be established
Taxation		Where a business sells goods in another country often below cost
Protectionism		Measures designed to restrict trade
Dumping		Physical limit on the quantity of imports allowed into a country
Anti-competitive practices		Financial support given to a domestic producer to help compete with overseas firms
Tax allowances		Price of borrowed money and reward to savers
Infant industries		Using changes in interest rates and the money supply to manage the economy
Budget		An official statement that government makes about how much the expenditure & taxation rates will be for the next year
Quota		Part of income that is not taxed