CHAPTER 31 – GOVERNMENT AND THE ECONOMY tsio 1. Copy and fill in the blanks.
a. The government practice of collecting money from the individuals and businesses in a country to pay for public services is called ___________.
b. Debt ___________ is the amount of money that the government allocates for paying off national debt.
c. ___________ refers to one-off or long-term income and expenditure.
d. ___________ refers to everyday or regular income and expenditure.
e. The document showing the government’s planned income and expenditure for the next year is the ___________ ___________. It is prepared by the ___________ for ___________.
f. If the planned total income is greater than the planned total expenditure, it is a ___________ budget.
g. If the planned total expenditure is greater than the planned total income, it is a ___________ budget.
2. Outline three reasons the government is involved in the Irish economy.
3. Name: a. Two sources of government revenue.
b. Two sources of government expenditure.
4. Using examples, explain the difference between current and capital income for the government.
5% 13% 10% 15% ns
5. The following pie chart shows the government’s planned capital expenditure for 2016.
Pie Chart Showing the Government's Planned Capital Expenditure of €4 billion for 2016
23% 9%
11% 14%
Public transport Road transport Housing Education Health
Enterprise Agriculture
Other
a. Name an example of capital expenditure in each area (e.g. building new schools in education).
b. What percentage of capital expenditure does enterprise, health and agriculture combined represent?
c. How much capital expenditure (€) does education represent?
6. The government has income of €7,000 million and expenditure of €5,500 million.
a. Calculate the net amount for the national budget.
b. State if it is a surplus or deficit budget.
7. Explain the opportunity cost of government spending on healthcare.
