Sources of Government Revenue - SS2 Economics Past Questions and Answers - page 1
What is the primary source of revenue for most governments?
Taxes
Fees and Fines
Borrowing
Grants
What is an example of a fee the government may charge?
Income tax
Sales tax
Property tax
Driver's license fee
What constitutes borrowing as a source of government revenue?
Selling goods and services
Receiving grants
Issuing bonds
Collecting fines
What is the purpose of grants as a source of government revenue?
To fund specific projects or initiatives
To collect money from individuals and businesses
To sell goods and services
To provide loans to investors
What is an example of a good or service the government may sell?
Lottery tickets
Electricity
Income tax
Corporate tax
(The government may sell goods and services, such as utilities e.g electricity to generate revenue)
What are the two types of taxes that the government may collect from individuals and businesses?
Income tax and corporate tax
Why is it important for governments to manage their revenue sources carefully?
To ensure they have the necessary funds to meet the needs of their citizens and promote economic development.