CE.13 - American Government's Role in the Economy

The government encourages competition by -

• Engaging in global trade

• Closing its borders

• Taxing imports

• Forbidding new businesses

A poster encouraging people to recycle would most likely be associated with the-

• FCC

• FTC

• EPA

• FBI

The US government promotes competition by -

• Encouraging monopolies

• Supporting new business growth

• Raising corporate taxes

• Taxing imports

Which of the following factors would competition affect?

• Price for consumers

• Quality of the product

• Military Expenditures

• Efficiency of Production

• The amount of government involvement

Governments produce public goods and services because -

• individuals acting alone could not produce them efficiently

• Individual businesses are forbidden by law from delivering public services

• United States businesses refuse to produce them

• the Constitution of the United States requires it

One of the most important sources of funds for public goods and services is -

• the budget surplus

• money borrowed in bonds

• user fees and tolls

• gifts from large donors

The government provides public goods and services because -

• these goods and services would not be available otherwise

• the states asked for them

• they need the tolls and fees these projects generate

• the Constitution of the United States requires them

Which is a public good or service?

• local grocery store

• interstate highways

• local savings and loan

• daycare providers

Identify some of the public goods and services provided by government spending.

• Schools

• Protection by the US military

• Personal computers

• Professional sports

• Postal service by the mail carrier

Which action would be most appropriate if the government needed to raise money?

• Increase taxes

• Reduce taxes

• Hire workers

• Increase spending