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Fiscal policy

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Question 6

A government compiles the following fiscal data for a financial year:

  • Tax revenue: £350 billion
  • Current expenditure on public services: £290 billion
  • Transfer payments (welfare and pensions): £40 billion
  • Capital expenditure on infrastructure: £30 billion

Which of the following correctly describes the government's fiscal position?

A

An overall budget deficit of £10 billion and a current budget surplus of £20 billion

B

An overall budget surplus of £20 billion and a current budget deficit of £10 billion

C

An overall budget deficit of £10 billion and a current budget deficit of £20 billion

D

An overall budget deficit of £40 billion and a current budget surplus of £60 billion

Markscheme

Fiscal policy Questions

  1. A Level
  2. /Economics
  3. /Fiscal policy

68 exam-style questions on OCR A Level Economics Fiscal policy. Each one has a worked solution and a mark scheme showing where the marks go.

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