Unit 4 - Government and the Economy

Which piece of legislation prohibits mergers and acquisitions that are likely to lessen competition?

• The Sherman Act

• The Federal Trade Commission Act

• The Morrisey Act

• The Clayton Antitrust Act

How does the government break up and prevent monopolies?

• Increased Taxes

• Antitrust legislation and regulation

• Deregulation

• Laissez-faire

When sellers secretly agree to set production levels or prices, it is called

• collusion

• manipulation

• price leadership

• bid rigging

The _______ Antitrust Act of 1890 played an important role in ending the stranglehold that John D. Rockefeller's Standard Oil Monopoly had on the economy.

• Custer

• Sherman

• Jackson

• Lincoln

Under a ________ tax system, individuals and entities with low incomes pay a higher amount of that income in taxes compared to high-income earners. 

• Regressive

• Progressive

• Proportional

Federal Income tax is a _______tax

• proportional

• regressive

• progressive

A tax in which the tax rate increases as the taxable amount (INCOME) increases

• progressive

• flat

• proportional

A tax system with a constant marginal rate, usually applied to individual or corporate income. 

• regressive

• progressive

• flat/proportional

A _______tax system, or a ______ tax system, assesses the same tax rate to taxpayers regardless of income or wealth. It is meant to create equality between marginal tax rate and average tax rate paid. Under a proportional tax system, individual taxpayers pay a set percentage of their income regardless of total income earned.

• progressive, flat

• proportional, flat

• regressive, proportional 

a per unit tax on producers

• Excise Tax

• Estate Tax

• Exercise Tax

• Imposed Tax