Unit 8: Gov't and the Economy Topics 1-5 (open notes!)

Which action will the government take when it needs more money?

• hold elections
• lower prices
• increase taxes
• hire workers

What happens when the government lowers taxes?

• Fewer funds are available to spending
• Credit becomes much harder to obtain
• More funds are available for spending
• Businesses have a more difficult time finding loans

The government pays for public goods and services through taxes, fees, and 

• spending money
• borrowing money
• foreign trade
• wasting money

What happens to the funds available for individuals and businesses when the government increases taxes?

• decreases funds available
• increases funds available
• the funds stay the same
• government borrowing increases

If the government increases borrowing, what happens to the funds available for individuals and businesses to borrow?

• reduces funds available
• increases funds available
• funds stay the same
• government spending increases

Increased government spending increases demand which may increase _____________ and _________________.

• public goods and services
• taxes and spending
• employment and production
• unemployment and taxes

Increased government spending may result in ___________ taxes.

• higher
• lower
• the same
• no

What government agency regulates the internet and television?

• FTC

• FCC

• FDA

• EPA

The government agency that regulates the environmental business.

• FTC

• FCC

• FDA

• EPA

Which amendment gives Congress the authority to tax individuals and businesses?

• 1st Amendment

• 5th Amendment

• 14th Amendment

• 16th Amendment