Download Unit 7 Government and the Economy

Unit 7
Government and the
Economy
1. Goods and services that can
be used by everyone are known
as _______goods and services
A. private
B. public
C. social
B
2. Public goods and services
are provided by __________.
A. Households
B. Businesses
C. Government
C
3. Government provides
goods and services
_____________.
A. to provide benefits to many simultaneously
B. because they would not be available if individuals had
to provide them
C. because individuals acting alone could not provide
them efficiently.
A,B,C
4. ___________is about how the
government taxes, borrows and
spends money.
A. Monetary Policy
B. Financial Policy
C. Fiscal Policy
C
5. Burger King is an example
of a ________
A. public good or service
B. financial institution
C. private good or service
C
6. A _________affects the U.S.
economy by reducing the funds
available for households and
business to spend.
A. tax decrease
B. tax increase
B
7. Government pays for public
goods and services by ______
A.
B.
C.
D.
collecting taxes
borrowing money
Taking out loans
A&B
D
8. ______affects the U.S.
economy by reducing funds
available for households and
businesses to borrow?
A. Decreased government borrowing
B. Increased government borrowing
B
9. Increased government
spending causes _______
production, employment, and
demand.
A. increased
B. no change in
C. decreased
A
10. The _______ is the
government agency that makes
rules about unfair and misleading
business practices?
A. Federal Communications Commission
B. Environmental Protection Agency
C. Federal Trade Commission
D. Food and Drug Administration
C
11. Increased government
spending may result in_______
taxes.
A. no taxes
B. lower
C. higher
C
12. The 16th amendment to
the U.S. Constitution ____
A. gave Congress the power to tax
personal and business income.
B. gave Freedom to slaves
C. authorized gun control
D. gave women the right to vote
A
13. An important function of
the U.S. government in our
economy is to ___________
competition
A. regulate and promote
B. promote
C. regulate
D. not encourage
A
14. Which is NOT a way
government promotes
competition in the U.S.
marketplace?
A. enforces anti-trust laws
B. engages in global trade
C. supports business start-ups
D. controls all resources
D
15. The FCC, EPA, and FTC are
examples of government
agencies that_____ and oversee
the way companies do business.
A. promote
B. regulate
C. denounce
D. organize
B
16. The _______ is the
government agency that makes
rules to prevent unfair business
practices?
A. Federal Communications Commission
B. Environmental Protection Agency
C. Federal Trade Commission
D. Food and Drug Administration
C
17. Advancements in
technology have contributed
to the global flow of
_________.
A.
B.
C.
D.
Information
Capital
Goods and Services
All of the above
D
18. The Federal Reserve Bank
functions to_______.
A. regulate the money supply
B. issue currency
C. serve as a clearing house for checks
D. be a bank for banks
A B C D
19. Changes in the reserve
requirement, interest rate, and
discount rate by “The Fed” are
known as _____________.
A. monetary policy
B. fiscal policy
C. money policy
D. financial policy
A
20. The U.S. government
_________to protect consumer rights
and property rights?
A.
B.
C.
D.
Takes property away
Passes laws
Creates agencies
Both A and B
B
C
21. When “The Fed” wants to slow
down the economy it ______the
interest rate, discount rate and
reserve requirement.
A. lowers
B. raises
B
22. The money supply ______
when “The Fed” lowers the
reserve requirement?
A. decreases
B. increases
B
23. The _______is the central
bank of the U.S. that regulates
the money supply and maintains
a stable economy.
A. Federal Communications
Commission
B. The Federal Trade Commission
C. The Federal Reserve Bank.
D. Richmond Commercial Bank
C
24. When “The Fed” wants to
stimulate the economy it ______
the interest rate, discount rate,
and reserve requirement.
A. raises
B. lowers
B
25. The money supply
______when “The Fed” raises
the reserve requirement?
A. decreases
B. increases
A
26. The right of private property
is protected by___________.
A.
B.
C.
D.
Negotiated contracts
Government securities
The Federal Reserve System
The 1st Amendment
A
27. Which is an example of
public property?
A.
B.
C.
D.
Homes
Businesses
City Buses
Rest Areas
C
D
28. To protect consumers,
government agencies________
A. write contracts for consumers
B. approve all consumer contracts
C. establish guidelines for public
health and safety
C
29. Consumers take _____
action if they believe their
consumer rights have been
violated.
A.
B.
C.
D.
government
no action
executive
legal
D
30. The U.S. pursues international
trade to increase
► A.
Wars
► B. wealth
C. children
D. all the above
B