IGCSE Economics 0455 · Government and the macroeconomy · 4

0455.4.3.1 — definition of the government budget.: past paper questions

9 real questionsasked in 3 of the last 10 exam series2020–2026usually: Analyse, Calculate, Choose, Explain, Define

Real questions on 0455.4.3.1 — definition of the government budget.

The newest 9 of 9 written questions. Open one to see it on the real paper.

0455/21 · May/June 2026 · Q1a[1]
Calculate Uruguay’s government spending in US dollars in 2023.
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0455/11 · October/November 2024 · Q18[1]
What does the forecast government budget for year 2 show?
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0455/12 · October/November 2024 · Q22[1]
What might explain the changes in the government’s budget over the period?
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0455/22 · February/March 2024 · Q2b[4]
Explain two reasons for a change in the amount of tax revenue a government receives.
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0455/23 · May/June 2023 · Q5a[2]
Define government budget.
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0455/12 · October/November 2022 · Q16[1]
Which pair is included in a government’s budget?
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0455/22 · October/November 2020 · Q3c[6]
the effects on income distribution and tax revenue of an increase in indirect taxes.
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0455/12 · May/June 2020 · Q16[1]
What is not included in public expenditure?
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0455/12 · May/June 2020 · Q17[1]
When is the budget described as balanced?
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What examiners said

‘Government budget’ was well understood by many candidates but there was also a substantial number of candidates who had only a vague idea of the definition. Good answers referred to both expenditure and revenue for governments, whilst the biggest weakness in other answers was to ignore either one or the other. The best answers also indicated that the budget is a plan or a forecast.
— Examiner report, May/June 2023, 0455/23 Q5(a) (Cambridge)

The strong answers here started by exploring why an increase in indirect taxes is likely to have more of an impact on the purchasing power of the poor than of the rich. They then went on to analyse that, despite this effect, income might become more evenly distributed if the government spends any extra tax revenue on measures that could reduce poverty. However, some candidates showed confusion bet...
— Examiner report, October/November 2020, 0455/22 Q3(c) (Cambridge)

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In the syllabus

4 0455.4.3.1 — definition of the government budget.

definition of the government budget.
reasons for government spending The main areas of government spending and the reasons for and effects of spending in these areas.
reasons for taxation Taxation as the main source of government revenue and the reasons for levying taxation.
classification of taxes Examples of the different classifications of tax; progressive, regressive, proportional; and direct, indirect.
principles of taxation The qualities of a good tax.
impact of taxation The impact of taxation on consumers, producers, government and economy as a whole. Continued.
definition of fiscal policy.
fiscal policy measures The tax and spending changes, in the form of fiscal policy, that cause budget balance or imbalance. Including calculations of the size of a budget deficit or surplus.
effects of fiscal policy on government How fiscal policy measures may enable the macroeconomic aims government to achieve its macroeconomic aims. Note: aggregate demand and aggregate supply are not required.

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