Unit 8 Review

Which action is an example of domestic policy rather than foreign policy?

• Building new hospitals in every state

• Selling weapons to an allied country

• Invading a country to take its land

Which phrase best completes the diagram?

• Reducing unemployment

• Providing access to education

• Increasing gross domestic product

Which statement best summarizes the effects of U.S. domestic policy?

• It offers resources to some Americans but not others.

• It makes social changes but doesn't affect the economy.

• It pressures some countries to change governments but not others.

The U.S. economy is largely based on the idea that:

• people should not have to borrow money to start businesses.

• the government should be in charge of most banking operations.

• people and companies should be free to make economic decisions.

One major characteristic of the U.S. economy is:

• the government setting wages for employees in most industries.

• limited government involvement in economic decisions.

• restrictions on the amount of competition between businesses.

Which phrase best completes the diagram?

• Raises and lowers tax rates

• Approves the federal budget

• Sets interest rates

The U.S. government tries to improve the country's economic growth by:

• changing income tax rates.

• setting its unemployment rate.

• creating a command economy.

The U.S. government sometimes attempts to increase economic growth by:

• spending money to create government jobs.

• measuring the consumer price index.

• removing all competition in specific industries.

How is the unemployment rate used as an indicator of economic health?

• A high unemployment rate indicates a healthy economy.

• A high unemployment rate indicates an unhealthy economy.

• A low unemployment rate indicates an unhealthy economy.

A decrease in a country's gross domestic product (GDP) could indicate:

• the economy is healthy.

• he economy is stable.

• the economy is unhealthy.