CE 13 - Role of Government in the Economy

The government can borrow money and collects taxes.

• true

• false

All of the following are ways the government promotes competition except

• collecting taxes

• prohibiting (preventing) monopolies

• engaging in trade

• supporting new businesses

Participating in global trade does all the following except...

• supports monopolies

• provides more competition

• being able to buy goods at a lower cost

• being able to sell goods at a lower cost

An increase in government spending can result in all the follow EXCEPT

• lower taxes

• higher taxes

• more production

• more demand

Another term for paper money is

• Debit card

• Credit card

• Coins

• Federal Reserve Note

If the government increases borrowing, then private borrowing

• increases

• decreases

• stays the same

The ____ amendment authorizes Congress to collect taxes

• 5

• 10

• 16

• 21

Which government agency regulates radio and tv?

• Environmental Protection Agency (EPA)

• Federal Trade Commission (FTC)

• Federal Communications Commission (FCC)

• Social Security Agency (SSA)

Which of the following is not money?

• Coins

• Credit Card

• Debit Card

• Check

If the Federal Reserve increases interest rates they are trying to _________ the amount of money people can borrow

• increase

• decrease