Unit 2 Government and Economics Test

What is fiscal policy?

• a government's surplus

• the use of government deficit to help the economy

• the use of government revenue collection and expenditure to influence a country's economy.

• government spending

What is monetary policy?

• economic activity

• a set of actions to control a nation's overall money supply and achieve economic growth

• a government's way of messing up the economy

• economic spending

What are John Locke's 3 core beliefs?

What is excise tax?

• an indirect tax on listed items

• a direct tax on unlisted items

• property tax only

• taxes you do not pay

What is a bailout?

• when someone gets out of economic jail

• when people help the economy by paying taxes

• when someone gains money from interest

• when a business, an individual, or a government provides money and/or resources (also known as a capital injection) to a failing company

List 5 differences in mandatory and discretionary spending. (worth 5 points)

List 3 similarities in mandatory and discretionary spending. (worth 3 points)

What are 5 facts about local governments? (worth 5 points)

What are 5 facts about state governments? (worth 5 points)

What are 5 facts about federal governments? (worth 5 points)