CIE AS Topical Past Paper 2
5.2 Fiscal policy
9708/21/M/J/24
a) Explain the reasons why governments impose taxes and consider whether an increase in income tax is fairer than an increase in sales taxes. [8]
The Chinese government has re-emphasised its commitment to rebalancing the economy from one focused mainly on investment and exports to one aiming to increase the proportion spent on domestic consumption.
b) Assess the extent to which it would be possible to achieve this by fiscal policy alone. [12]
9708/21/O/N/23
a) Explain the reasons why governments impose taxes and consider whether an increase in income tax is fairer than an increase in sales taxes. [8]
b) Assess whether a government should always aim to balance its budget rather than have a budget surplus or a budget deficit. [12]
9708/23/O/N/22
a) Explain the difference between a progressive direct tax and a regressive indirect tax, with an example of each. [8]
b) Discuss whether an increase in direct taxes or an increase in interest rates is the more effective way of reducing inflation. [12]
9708/22/F/M/22
b) Discuss the ways in which fiscal policy can be used to increase the aggregate supply of products in an economy and consider whether this approach is likely to be effective. [12]
9708/22/F/M/20
b) Discuss the view that direct taxes are the fairest and the most effective way for governments to raise revenue. [12]