role of the government in the economy

All of the following are ways the government promotes competition except

• collecting taxes

• prohibiting (preventing) monopolies

• engaging in trade

• supporting new businesses

Which is an example of a good or service provided by the government? (choose 3)

• Military

• Roads

• USPS Mail

• Taco Bell

Taxes paid to the government help pay for (choose 3)

• Police/Fire

• Schools

• Pizza

• Roads

Revenue from sales tax and income tax

• Help people vote

• Help pay for public goods and services

• Must be returned to the consumer

• Is used to buy more resources

The government can borrow money and collects taxes.

• true

• false

If the government increases borrowing, then private borrowing

• increases

• decreases

• stays the same

If the government decreases taxes, then private spending

• increases

• decreases

• stays the same

An increase in government spending can result in all the follow EXCEPT

• lower taxes

• higher taxes

• more production

• more demand

If the Federal Reserve increases interest rates they are trying to _________ the amount of money people can borrow

• increase

• decrease

Which is NOT a role of the Federal Reserve system?

• Regulating banks

• Maintaining value of currency

• Acting as the governments bank

• Monitoring the president