Quiz on Government's Role in Market Economy

The involvement of government in a market economy presents _____ for small business owners.

(a)   defines how the market works in a market economy.

• Supply and demand
• It is controlled by the government
• It is irrelevant
• It is a minor factor

What is the purpose of the government’s emergency assistance during the pandemic?

• To increase taxes

• To help entrepreneurs facing bankruptcy

• To build new infrastructure

• To provide free healthcare

The purpose of the Economic Stimulus Act mentioned in the text was to (a)   .

• To reduce taxes permanently
• To boost the economy by encouraging
• To increase government savings
• To decrease inflation

What is the central bank of the United States?

• World Bank

• International Monetary Fund

• Federal Reserve

• European Central Bank

What is the role of government bonds during economic conditions?

• To increase inflation

• To influence economic conditions

• To reduce employment

• To eliminate taxes

Match the following economic actions with their intended outcomes.

• Implementing austerity measures

• Increased savings

• Cutting interest rates

• Higher taxes

• Increasing tax rates

• Reduced spending

• Raising interest rates

• More consumer spending

What is one of the primary responsibilities of a business owner to their employees?

• Paying your employees properly

• Offering free meals

• Providing company cars

• Organizing social events

What might state laws dictate regarding new applicants?

• How to conduct interviews

• How to check criminal history

• How to organize training sessions

• How to plan team-building activities

What does the EEOC protect against?

• Workplace discrimination

• Environmental hazards

• Product defects

• Financial fraud