The scheduling policy is the algorithm used by the scheduler to decide which task to execute at any point in time.
The policy of a (non real time) multi user system will most likely allow each task a "fair" proportion of processor time.
The policy used in real time / embedded systems is described later.
In addition to being suspended involuntarily by the RTOS kernel a task can choose to suspend itself. It will do this if it either wants to delay (sleep) for a fixed period, or wait (block) for a resource to become available (eg a serial port) or an event to occur (eg a key press). A blocked or sleeping task is not able to execute, and will not be allocated any processing time.
Referring to the numbers in the diagram above: