IB Economics Topic 3.6.1 Fiscal Policy Revision Notes (SL/HL)

IB Economics Topic 3.6.1 Fiscal Policy Revision Notes (SL/HL) | RevisionDojo

Written by official IB examiners

Definition

Fiscal Policy

Refers to the influence of government spending and taxation to impact the aggregate demand.

Sources of Government Revenue

As fiscal policy includes the use of government resources, it is important to know the sources of those resources. Sources of government revenue include:
1. Tax Revenue
  1. Direct Tax Revenue
  2. Indirect Tax Revenue
2. Sale of Goods and Services
  1. There are services which governments offer that consumers need to pay for such as electricity, gas, transportation, water, etc. This is also a source of revenue for the government.
3. Sale of Government Assets
  1. The sales of government assets is transferring ownership to private entities (privatisation).

Note

Governments may also borrow money (which can count as revenue), however, this creates debt that must be repaid with interest (regarded as expenditure).

Government Expenditures

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Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

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Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Duis aute irure dolor in reprehenderit

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit.

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

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Definition

Fiscal Policy

Refers to the influence of government spending and taxation to impact the aggregate demand.

Sources of Government Revenue

As fiscal policy includes the use of government resources, it is important to know the sources of those resources. Sources of government revenue include:
1. Tax Revenue
  1. Direct Tax Revenue
  2. Indirect Tax Revenue
2. Sale of Goods and Services
  1. There are services which governments offer that consumers need to pay for such as electricity, gas, transportation, water, etc. This is also a source of revenue for the government.
3. Sale of Government Assets
  1. The sales of government assets is transferring ownership to private entities (privatisation).

Note

Governments may also borrow money (which can count as revenue), however, this creates debt that must be repaid with interest (regarded as expenditure).

Government Expenditures

Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

1. Introduction to Economics2 subtopics

2. Microeconomics12 subtopics

3. Macroeconomics7 subtopics

4. The Global Economy10 subtopics

IB Economics 3.6.1 Fiscal Policy Notes

1. Introduction to Economics2 subtopics

2. Microeconomics12 subtopics

3. Macroeconomics7 subtopics

4. The Global Economy10 subtopics

Sources of Government Revenue

Government Expenditures

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account

Sources of Government Revenue

Government Expenditures

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account