Unit 5 Economics Test Review

The government can increase taxes to stop rising inflation.

• True

• False

Increasing government spending to try to reduce unemployment is an example of monetary policy.

• True

• False

The U.S. Federal Reserve system regulates monetary policy.

• True

• False

The policy that involves the decision to increase or decrease government spending.

• Monetary

• Inflation

• Fiscal

• Monopoly

What could cause the federal deficit to decrease?

• Funding gov't activities

• Increasing income taxes

• Decreasing income taxes

• Building more schools

What is the general purpose of taxes?

• Funding gov't activities

• Redistributing income

• Creating wealth

• Funding health care

Most of the Federal Revenue comes from:

• Corporate Taxes

• Sales Tax

• Federal income tax

• Property Tax

Private schools are funded by federal and local taxes.

• True

• False

Health care for the elderly is funded by federal and local taxes.

• True

• False

National defense is not funded by federal and local taxes.

• True

• False