Government's Role in the Economy Quiz 1

What is the primary purpose of antitrust legislation?

• To encourage the formation of monopolies

• To promote competition in business

• To increase government revenue

• To support global trade

Which of the following is an example of a monopoly?

• A single company owning all the grocery stores in a city

• Multiple companies selling similar products

• A new business startup

• A government agency regulating trade

How does the government support business start-ups?

• By reducing global trade

• By providing loans and/or grants

• By increasing taxes

• By establishing monopolies

Which agency regulates radio, TV, and phone communications?

• EPA

• FTC

• FCC

• SEC

What is the role of the EPA?

• To prevent misleading advertisements

• To regulate the stock market

• To protect human health and the environment

• To insure bank deposits

Which agency would handle a case of misleading advertisements?

• FTC

• FDIC

• EPA

• FCC

What is a characteristic of public goods and services?

• They benefit many people simultaneously

• They are provided by private companies

• They are only available to those who pay for them

• They are sold in the marketplace

How are interstate highways primarily funded?

• Through tolls

• By private companies

• Mainly tax revenue and borrowed funds

• By individual donations

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

• Property tax

• Sales tax

• Fees and fines

• Income tax

Which amendment to the U.S. Constitution authorizes Congress to tax personal and business incomes?

• 1st Amendment

• 16th Amendment

• 14th Amendment

• 10th Amendment