Government and Economy Quiz

What is the primary role of the army and coast guard in an economy?

• Maintain traffic laws

• Protect the state from external threats

• Provide business loans

• Regulate consumer prices

Which of the following is NOT considered a social service provided by the government?

• Health services

• Education

• Marketing strategies for businesses

• Proper road networks

Why does the government implement labour laws?

• To increase corporate taxes

• To ensure workers are treated fairly

• To limit business expansion

• To discourage trade unions

National insurance contributions help workers by providing:

• A guarantee of lifetime employment

• Financial assistance in cases of illness, injury, or severance

• Free housing upon retirement

• Immediate employment upon job loss

What is a common government measure to control environmental pollution?

• Increasing company profits

• Creating tax-free zones for industries

• Enacting environmental laws and zoning areas

• Encouraging industries to expand without restrictions

The zoning of certain areas as national parks primarily helps to:

• Increase government revenue

• Protect endangered species

• Provide more land for farming

• Reduce tourism development

A key responsibility of the government in managing the economy is:

• Setting wages for all jobs

• Controlling borrowing and national debt

• Increasing consumer spending without limits

• Eliminating all forms of taxation

Investors are more likely to invest in a country where:

• There is high political instability

• Crime rates are uncontrolled

• The economic environment is stable and secure

• There are no consumer protection laws

Which of the following is a measure used by the government to protect consumers?

• Eliminating all competition in the market

• Encouraging consumer protection agencies

• Increasing product prices

• Allowing businesses to operate without regulations

Price controls are mainly used to:

• Help businesses make more profit

• Ensure essential goods remain affordable

• Reduce competition among businesses

• Remove government involvement in the market