Government and Business

Throughout history, the role of government in business has changed. When the constitution was written, what was the federal government's role in business?

• issue patents to inventors

• impose tariffs on imported goods

• settle disputes between businesses

• all the above

How does the federal government pay for the regulations and services it provides?

• by imposing tariffs on imports and raising interest rates

• by collecting business and personal income taxes, and by borrowing money

• by increasing the money supply and raising taxes

• by reducing the money supply and lowering taxes

As the country grew, and as we grew to a more industrialized economy, and as business became more complicated, this increased:

• interest rates

• money supply

• the role of government in business

• none of the above

The public sector includes things like:

• the military and the U.S. Postal Service

• public education and the Federal Express

• welfare programs and Microsoft

• food and drug regulations and Apple

While the primary goal of business is to make a profit, government regulation ensures that businesses:

• ignore privacy laws

• are also mindful of and compliant with environmental laws

• make a profit

• provide the most effective products

Which of the following is provided by the private sector:

• interstate highway program

• public education

• Chipotle restaurant

• conservation laws

Which of the following is provided by the public sector:

• private schools

• electric cars

• cloud storage providers

• interstate highway program

Which of the following is part of the private sector:

• Ford and General Motors

• food and drug regulations

• interstate highway program

• public education

Which of the following is part of the public sector:

• Apple and Google

• Microsoft and Amazon

• the military and welfare programs

• UPS and Fed Ex

What fiscal policy tools does government use to stimulate the economy?

• raise taxes

• pass new laws

• lower taxes

• lower interest rates