Economics II Test Review

Why would a business borrow from a bank?

• to pay back a loan

• to expand

• to buy products

• to save

Federal agencies like the EPA and FCC establish guidelines and regulations in order to...

• make profit

• protect public health and safety

• prohibit business startups

• encourage monopolies

How do individuals contribute to economic flow?

• buy resources

• sell resources

• sell capital

• collect taxes

How can the government support extra spending on public programs?

• raise taxes

• lower taxes

• sell products

The FCC, EPA, FDA and FTC are all...

• independently owned

• private resources

• monopolies

• regulatory agencies

The 16th Amendment is related to...

• business sales

• consumer rights

• income tax

• financial institutions

Three ways gov't pays for public goods and services is by taxes, borrowed money and ....

• fees

• investments

• profits

• monopolies

The gov't tries to promote __________ by having antitrust laws, encouraging businesses and engaging in global trade.

• financial institutions

• monopolies

• competition

• alliances

Corporations are owned by...

• partners

• managers

• producers

• stockholders

Why does the gov't provide us with public goods and services?

• to give businesses the resources to make products

• to allow consumers to take legal action

• consumers have the right to own private property

• they would not be available if public had to pay for them