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Worksheets

US Government and the Economy

Total questions: 15

Worksheet time: 49mins

Name
Class
Date
1.

A monopoly is what?

a)

When a bank only has one loan.

b)

When one business/ corporation controls an entire market.

c)

A government that only has one central bank.

d)

When a handful of businesses/ corporations control a market.

2.

What does the government often do when inflation gets too high?

a)

It prints more money.

b)

It raises taxes.

c)

It raises interest rates.

d)

It increases government spending.

3.

Which of the following is a function of money?

a)

It's a standard of value.

b)

It's a store of value.

c)

It's a medium of exchange.

d)

All of the above.

4.

Our money has value because it is

a)

It's easily destroyed.

b)

It's made of gold and silver.

c)

It's generally acceptable.

d)

All of the above.

5.

How many Federal Reserve districts are there?

a)

12

b)

50

c)

116

d)

3

6.

Economic growth takes place when the GDP increases without increases in

a)

Employment

b)

Inflation

c)

Wages

d)

GDP

7.

What is the largest entitlement program provided by the United States government?

a)

Military defense

b)

Welfare

c)

Interest debt

d)

Social security

8.

A group of businesses with a large market share, who agree to charge high prices for profit is called a _______.

a)

Trust

b)

Monopoly

c)

Cooperative

d)

Corporation

9.

What describes a situation in which everyone who wants a job can find one?

a)

Full employment

b)

Unemployment

c)

Interest

d)

Credit counseling

10.

A bank that offers a __________ to a customer will expect it to be repaid with interest

a)

Interest

b)

Loan

c)

Debt

d)

Withdrawl

11.

A general rise in the prices of goods and services is called what?

a)

Interest

b)

Loan

c)

Inflation

d)

Deficit budget

12.

The __________________ grows when the government borrows money to pay for spending programs it cannot afford.

a)

Budget deficit

b)

Budget surplus

c)

debt

d)

Interest

13.

The section of the graph in blue above most likely represents this element of fiscal policy:

a)

Budget surplus

b)

Budget deficit

c)

Inflation

d)

Recession

14.

The section of the graph highlighted by the square above most likely represents this element of fiscal policy:

a)

Budget surplus

b)

Budget deficit

c)

Inflation

d)

Recession

15.

The Smith family earns a yearly income of $150,000 and pays $35,000 in income tax. The Harris family earns a yearly income of $75,000 and pays $15,000 in income tax. The Johnson family earns a $40,000 yearly income and pays $6,000 in tax.


According to the chart above, what type of tax is in effect?

a)

Proportional

b)

Progressive

c)

Regressive