Roles of gov't in the economy

What is true about public goods and services like highways and defense?

• They are provided for only a few people at a time.

• They are provided for many at one time and would not otherwise be available to everyone.

• They are never used by the public.

What does the 16th Amendment relate to in terms of fiscal policy?

• The establishment of the Federal Reserve

• The introduction of income tax

• The creation of Social Security

• The prohibition of alcohol

What is one method the government uses to pay for goods and services?

• Increasing educational funding

• Reducing military expenses

• Borrowing money (deficit spending)

• Privatizing national parks

What is the purpose of anti-trust legislation?

• To support monopolies

• To reduce competition

• To prevent monopolies

• To increase taxes

Which of the following is a way to promote competition?

• Limiting business start-ups

• Engaging in local trade only

• Ignoring global trade opportunities

• Assisting business start-ups

What is the role of the Fed in the United States?

• It provides educational services

• It regulates the money supply

• It oversees healthcare

• It constructs roads

What does the Fed do with bonds and securities?

• It only buys bonds

• It only sells securities

• It buys and sells bonds/securities

• It trades stocks

What is one of the responsibilities of the Fed related to financial rates?

• It sets tax rates

• It sets health rates

• It sets interest rates

• It sets educational standards

What is one of the goals of regulating the market?

• To increase taxes

• To ensure honest advertising and safe products

• To reduce business competition

• To promote international trade

What does market regulation aim to provide besides ensuring honest advertising?

• A decrease in product prices

• A fair, stable business environment

• An increase in government control

• A focus on export-only businesses