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Economics Report on Budget

Extracts from this document...

Introduction

ECONOMICS COURSEWORK "Everyone benefited from the budget of 2003" BEAL HIGH SCHOOL-13317 UMAR SHEIKH-2202-11GS Economics Report on Budget "Everyone benefited from the budget of 2003t". Introduction The aim of this report is to find out how budget 2003 has affected different groups of people. Has the budget benefited the UK? Does the majority of the UK know about budget? In this report I will find out the answers to these questions and produce a clear conclusion outlining the main factors included in budget 2003 and if it was a success or not. In this report I have to find out if budget 2003 benefited everyone or not. I will need to gather information from different angles to find if budget had an affect on the citizens of Britain. To complete my report I will under go primary and secondary research to find out as much as I can to find out about last years budget. I will apprehend research such as questionnaires, interviews, textbooks etc. My research will be limited as I cannot go through vast amounts of data such as economic journals, surveys and focus groups which are beyond my reach and so my conclusion will present limited amount of data. This report will be structured in a way that you will be able to follow it with simple economic jargon. In the beginning I will present information on budget and have an understanding of it thoroughly to show you that I have understood the concept of a budget. I will give you data on the information I have collected from both primary and secondary information and conclude what I have found from the results. Using my research I expect to test the following hypotheses: -"I expect people to consume fewer cigarettes because the tax has increased by 8p". -"I expect the consumption of beer to fall because the tax has risen by 1p". ...read more.

Middle

- Secondly by using a budget it affects economic behaviour and helps the country to develop for the better and hence improve the economy. For example taxes on cigarettes can discourage people to smoke and taxes on petrol can discourage people to be more economised on fuel. - Thirdly the government uses a budget to redistribute income between different individuals and between different sectors of the economy to keep it controlled and balanced. - Lastly to sum everything up a government uses a budget to develop and improve the country's economy. They can then compete with other economies of the world and so to increases the quality of living for the citizens of that country. In this section of theory I will go over what fiscal policies can the chancellor of exchequer take. -Fiscal policy -Expansionary policy -Contractionary fiscal policy Fiscal Policy Fiscal policy is the government's policy with regard to public expenditure, taxation and borrowing. This is used to manage Aggregate Demand which is calculated by adding all of the individual demand curves in the economy. Expansionary fiscal policy is the government reducing tax and increasing expenditure. This means that AD will increase causing the demand curve to shift to the right. As AD increases unemployment will fall as the government is spending more on the economy such as NHS, defence education etc which will cause them to employ more people as the firms know that tax has gone down and more people will buy goods and services. The economy will grow and become more efficient because national income will rise as an increase in spending will increase. Inflation will increase because higher demand will allow firms to push up prices. The standard of living will increase. In Contractionary fiscal policy, the government will increase tax and reduce expenditure. This means that AD would decrease causing unemployment to rise, low economic growth, decrease in inflation and lower standard of living. ...read more.

Conclusion

The reason they still drink it as it has become a necessity or addictive for them. My third expectation was that I thought that people would cut down in drinking wine and it was right as people have cut down but a little bit as they do not drink a lot of wine in this first place due to it being for special occasions. My fourth expectation was that I thought people would cut down in driving as the road tax has increased by �5 and so my expectation was right as a lot of people use public transportation. These results are limited as they present little information on a small number of people. I could have improved my report by giving more precise questions and giving out a larger number of questionnaires out and using other methods of primary research such as focus groups and surveys. I also could have gone through more material to get wider knowledge of budget 2003 for instance I could have used economic journals firstly and newspapers which dated back to 2003. I could also have given the questionnaires to different backgrounds and different parts of the country. I did not use all of the question's answers in the questionnaires as they were irrelevant to my report. Recommendations I recommend that the government to try to fade unemployment away as this helps the society and economy. I also recommend that the government should increase tax on alcohol, cigarettes and vehicle excise duties so that the people who smoke and drink are aware of the tax and so drivers can decrease pollution which will make society or even Britain a good place to live. However if this was to happen the revenue that the government receives from cigarettes etc will decrease and so there will be an increase in other areas which will mean that we will loose out. Lastly I recommend that the government should keep up the congestion charges in central London which has made people more economical. ...read more.

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