Government and the Economy Test Review

Which action represents a way the federal government can promote business competition?

• punishing polluters
• regulating investors
• prohibiting monopolies
• enforcing tariffs

Which solution will have the biggest impact if a consumer's rights have been violated?

• take legal action
• boycott the company
• interview for the newspaper
• write a complaint letter

The monetary system in the United States is successful because of-

• the stock market's prices on shares of corporations
• the confidence of the consumer in the govt
• the supply and demand for the U.S. dollar overseas
• the ability of businesses to issue money

Other than taxes, how else does the government get money to pay for public goods and services?

• businesses
• donations
• borrowed money
• corporations

Increased government spending on public goods and services-

• increases demand
• decreases demand
• lowers taxes
• decreases production

When the government lowers taxes-

• national wealth decreases
• national resources are depleted
• international trade decreases
• consumers have more money to spend

Which is a federal reserve note?

• 1
• 2
• 3
• 4

Increased government spending may result in-

• lower taxes
• higher taxes
• lower demand
• increased trade

When Congress needs a loan, they go to the Federal Reserve.  This shows that the Fed is-

• responsible for legislative purchases
• the federal government's tax collector
• accountable for legislative actions
• the federal government's bank

What is an agreement between two or more people called?

• contract
• discount
• security
• compromise