Unit 7 Test Review

Front

Which of the following are the two measures that a government may take in implementing an expansionary fiscal policy? increased taxes and decreased spending, Decreased taxes and increased spending, Decreased taxes and decreased spending, increased taxes and increased spending

Back

Decreased taxes and increased spending

Front

What is the term for using government spending and revenue collection in order to influence the economy?

Back

fiscal policy

Front

As part of an energy conservation move, a federal government adds a 10-cent per gallon tax on gasoline to encourage people to drive less. What type of tax is this?

Back

excise tax

Front

Why is it important that a tax be efficient?

Back

Taxes need to be efficient, that is the government can collect them easily and taxpayers can pay/prepare them speedily.

Front

Social Security, Medicaid, and Medicare are mandatory withholdings from employees' paychecks. What is the basis for these taxes?

Back

employee income

Front

What influenced the government to pass the Federal Reserve Act in 1913? Options: Congress wanted to exercise more control over the banking system, an excess of counterfeit bills being circulated, President Wilson wanted to put all of the nation's banks under one company, a lack of confidence in the U.S. banking system.

Back

a lack of confidence in the U.S. banking system

Front

Which of the following is a responsibility of the Federal Reserve Bank?
Options:
regulating the stock market,
implementing fiscal policy,
inspecting and regulating banks,
investigating counterfeiting

Back

inspecting and regulating banks

Front

Which of the following economic problems may be caused by an easy or expansionary money policy?
Options: lack of capital investment, inflation, unemployment, drop in consumer confidence

Back

inflation

Front

How do you feel about this unit?

Back

I am good to go!; I need to study a little more!; I need to schedule a meeting with Mrs. Wanat immediately!