Podcast
Questions and Answers
What is the main tool used in monetary policy to influence the economy?
What is the main tool used in monetary policy to influence the economy?
Which tax is imposed on profits earned by corporations or businesses operating within a country?
Which tax is imposed on profits earned by corporations or businesses operating within a country?
What is the function of money that eliminates the inconveniences of barter trade?
What is the function of money that eliminates the inconveniences of barter trade?
Which tax is levied on the value of real estate properties owned by individuals or businesses?
Which tax is levied on the value of real estate properties owned by individuals or businesses?
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How does the government slow down economic activity according to monetary policy?
How does the government slow down economic activity according to monetary policy?
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What is the tax levied on particular products considered to be harmful or non-essential?
What is the tax levied on particular products considered to be harmful or non-essential?
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What does Gross National Product (GNP) measure?
What does Gross National Product (GNP) measure?
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Which economic performance indicator includes income earned by citizens and businesses operating outside the country's borders?
Which economic performance indicator includes income earned by citizens and businesses operating outside the country's borders?
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What is the primary focus of the 2030 Agenda adopted by all UN Member States?
What is the primary focus of the 2030 Agenda adopted by all UN Member States?
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What does fiscal policy involve?
What does fiscal policy involve?
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How does fiscal policy work in stimulating the economy?
How does fiscal policy work in stimulating the economy?
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'Gross National Product (GNP) helps us understand:'
'Gross National Product (GNP) helps us understand:'
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Study Notes
Gross National Product (GNP)
- GNP measures the total value of all goods and services produced by a country's residents, both domestically and abroad, within a specific time period (usually a year).
- It includes the income earned by citizens and businesses, whether they operate within the country's borders or outside of it.
2030 Agenda and Sustainable Development Goals (SDGs)
- The 2030 Agenda outlines a shared blueprint for peace and prosperity, focusing on 17 Sustainable Development Goals (SDGs).
- The goals include ending poverty, improving health, education, reducing inequality, spurring economic growth, and tackling climate change.
Fiscal Policy
- Fiscal policy involves government actions related to taxation and spending to influence the economy.
- It helps to stimulate the economy by increasing spending or cutting taxes, or cool it down by reducing spending or raising taxes.
- The main tools of fiscal policy are government spending and taxation policies.
Classification of Taxes
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Direct Taxes:
- Personal Income Taxes: levied on income earned by individuals, businesses, and other entities.
- Business Income Taxes: imposed on profits earned by corporations or businesses operating within a country.
- Property Taxes: levied on the value of real estate properties owned by individuals or businesses.
- Estate and Gift Taxes: levied on transfers of wealth, including assets transferred at death or while the donor is living.
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Indirect Taxes:
- Value-Added Tax (VAT): levied on purchase or consumption of selected products.
- Excise Tax: levied on particular products considered harmful or non-essential.
- Duties: taxes on purchase or consumption of imported goods, often specific to international trade.
Monetary Policy
- Monetary policy involves the control of money supply and interest rates by a central bank to achieve economic goals.
- It helps to stimulate the economy by increasing the money supply or decreasing interest rates, or slow it down by doing the opposite.
- The main tools of monetary policy are adjusting interest rates and buying or selling government securities to influence the money supply.
Functions of Money
- Medium of Exchange: money is a convenient and effective medium of exchange, eliminating the inconveniences of barter trade.
- Standard of Value: money is a convenient yardstick used to measure the market values of different commodities.
- Store of Value: money is a form of wealth because it can be saved and used in the future.
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Description
Learn about Gross National Product (GNP) and how it is used as a measure to understand a country's economic activity, encompassing the total value of goods and services produced by its residents domestically and abroad. Explore how GNP contributes to assessing a country's economic performance and productivity.
