US Economy & Government Roles Quiz

A person who starts a business, takes all the risk, and keeps all the profits is called an (a)   .

Which type of business is owned by one person who makes all the decisions and keeps all the profit?

• A partnership

• A proprietorship

• A corporation

• A cooperative

Banks, Savings and Loans, and Credit Unions are all examples of what?

• Government agencies

• Private financial institutions

• Public services

• Monopoly businesses

What is the main reason a government collects taxes from its citizens?

• To give money to entrepreneurs

• To pay for public services

• To help businesses make more profit

• To control the price of goods

How do financial institutions like banks act as intermediaries between savers and borrowers?

The Federal Reserve System has several important roles in the US economy. Which of the following is NOT one of its functions?

• Maintaining the value of the dollar

• Managing the amount of money in the economy

• Acting as the Bank of the Federal Government

• Collecting income taxes from citizens

The (a)   Amendment allows Congress to tax the income of citizens.

What type of laws does the government pass to promote competition and prevent a single business from dominating a market?

• Consumer protection laws

• Income tax laws

• Antitrust laws

• Public service laws

Which of these is an example of a public good or service provided by the government?

• A private restaurant

• A new smartphone

• National Defense

• A small business loan

What is the biggest factor in determining how much income a person will earn in life?

• Where they live

• Their level of education

• The type of car they drive

• How many credit cards they have