Government Role in Economy

What is the main source of revenue for the federal government?

• Fees

• Property tax

• Income tax

• Sales tax

Which agency is responsible for regulating and promoting competition in the communications sector?

• FDA

• FTC

• SEC

• FCC

What type of tax is levied on the sale price of items purchased?

• Sales tax

• Income tax

• Property tax

• Corporate tax

Which of the following is NOT a way the government pays for public goods and services?

• Borrowed funds

• Tax revenue

• Fees

• Private investments

What does the Federal Reserve System regulate?

• Consumer products

• The banking system

• Environmental policies

• Education systems

Which of the following is a characteristic of most goods and services provided by the government?

• Profit-driven

• Limited to urban areas

• Available only through private companies

• Provide benefits to many simultaneously

What is the role of antitrust legislation?

• To increase import taxes

• To reduce public sector influence

• To promote private business monopolies

• To discourage the development of monopolies

What is the purpose of money in the economy?

• To limit business growth

• To fund private ventures

• To control the population

• Acts as a medium of exchange

Which of the following is NOT a type of money used in the United States?

• Currency

• Coins

• Stocks

• Bank deposits

Sales Tax

• Tax on money earned from working

• Tax paid on property owned

• Tax on items you buy