A group of shops sells goods on which VAT is charged. Table 1 shows weekly household spending at these shops. The VAT rate did not change during this period.
| Measure | Earlier week | Later week |
|---|---|---|
| Household spending at the shops | £8,000 | £9,600 |
Explain how the change in Table 1 could affect the government's ability to fund public services.
81 exam-style questions on AQA GCSE Economics 1.1 Economic foundations, covering 1.1.1a Needs and wants, 1.1.1b The central purpose of economic activity, 1.1.1c Key economic decisions, 1.1.1d The main economic groups, 1.1.2a The nature of an economic resource, 1.1.2b The four factors of production, 1.1.3a The basic economic problem and making choices, and 1.1.3b Opportunity cost. Each one has a worked solution and a mark scheme showing where the marks go.