Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

The diagram presents information on the British Government’s estimated spending and receipts for 2010–2011. What can be concluded from the diagram?

  • Aeffect of largest spending item on income distribution less equitable; type of largest receipt item indirect tax; overall budget balance deficit
  • Beffect of largest spending item on income distribution less equitable; type of largest receipt item indirect tax; overall budget balance surplus
  • Ceffect of largest spending item on income distribution more equitable; type of largest receipt item direct tax; overall budget balance deficit
  • Deffect of largest spending item on income distribution more equitable; type of largest receipt item direct tax; overall budget balance surplus

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