Chapter 12 Government Objectives Policies

This is the amount of money spent on public services e.g. health, education, defence, policing

The government raises revenue from taxes VAT, corporation, income

Using changes in taxation and government expenditure to manage the economy

The government is responsible for building roads, bridges, railways, power generators, schools, hospitals,

Restrictive trade practices attempt by firms to prevent or restrict competition

Restrictions that mean it is difficult for new firms to enter a market

Use of trade barriers to protect domestic producers

New industries that are yet to be established

Where a business sells goods in another country often below cost

Measures designed to restrict trade

Physical limit on the quantity of imports allowed into a country

Financial support given to a domestic producer to help compete with overseas firms

Price of borrowed money and reward to savers

Using changes in interest rates and the money supply to manage the economy

An official statement that government makes about how much the expenditure & taxation rates will be for the next year

Part of income that is not taxed