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Unit 5 Honors - Govt & Economy

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

This is levied on specific goods when they are produced, but is usually passed on to the consumer. Also known as a "sin tax"

a)

estate tax

b)

income tax

c)

excise tax

d)

flat tax

2.

Imagine that the Fed announces they're raising interest rates from 1% to 3.5%. This tells us that inflation is probably ____ and they want the economy to ____.

a)

low, slow

b)

low, grow

c)

high, slow

d)

high, grow

3.

Which of these is NOT a role of the Federal Reserve?

a)

The regulator of all US banks

b)

Agency that collects all tax revenue

c)

Central bank of the US

d)

Bank for the government and other banks

4.

True or False: The federal government ONLY collects revenue via taxes.

a)

True

b)

False

5.

True or False: Sales tax is the same in all 50 states.

a)

True

b)

False

6.

True or False: Income tax is different from state to state.

a)

True

b)

False

7.

GDP is the total value of _______ in a specific period of time.

a)

All imports the US receives

b)

All incomes of a country's residents, minus all debts owed

c)

All goods exported by the US

d)

All goods made & services provided in a country

8.

Lindsay is 15 and not looking for a job because she's busy with school & sports, plus she cannot drive. She is ...

a)

employed

b)

unemployed

c)

not in the labor force

9.

Jon was working at Twitter, but was laid off earlier this month. However he found a new job at Meta and started yesterday. He is...

a)

employed

b)

unemployed

c)

not in the labor force

10.

Andrew was working at Jersey Mike's. However he was fired because he was consistently late, or didn't show up to work at all. He is ...

a)

employed

b)

unemployed

c)

not in the labor force

11.

Beth worked at Duke for 30 years and retired in August. She might start working part time, but for now is enjoying the freedom and flexibility of retirement. Beth is...

a)

employed

b)

unemployed

c)

not in the labor force

12.

A recession is ...

a)

a short-term (<3 months) increase in inflation

b)

a short-term (<3 months) period of GDP growth

c)

a prolonged period (>6 months) of economic downturn

d)

a prolonged period (>6 months) of economic growth

13.

The Department of the Treasury offered high interest rates on bonds this year because they wanted people to ...

a)

purchase bonds and put more $ in circulation

b)

buy goods to create a recession

c)

buy goods to decrease inflation

d)

purchase bonds and get $ out of circulation

14.

When the Fed raises interest rates, it makes borrowing money _______

a)

easier

b)

more difficult

c)

it does not affect people's ability to borrow

15.

True or False: The U.S. government is often in a budget deficit (spending more $ than it has)

a)

True

b)

False

16.

What strategy/strategies can the U.S. government use to DECREASE a deficit? Check ALL that apply!

a)

Encourage inflation

b)

Collect more taxes

c)

Decrease government spending

d)

Increase government spending

17.

The U.S. federal income tax is _______ meaning the tax rate is higher for those who earn more income.

a)

excise

b)

progressive

c)

regressive

d)

flat

18.

Sales tax is a _________ because poorer people pay a higher share of their income on the tax than the wealthy.

a)

progressive tax

b)

regressive tax

c)

excise tax

d)

income tax

19.

The _____________ is used to measure the weighted average of various goods Americans purchase. When this increases, it's a sign of inflation.

a)

Gross Domestic Product

b)

Federal Reserve

c)

Internal Revenue Service

d)

Consumer Price Index

20.

What topic did you find MOST interesting this unit?

a)

Different ways of measuring the economy

b)

Different types & levels of taxes

c)

The Federal Reserve, monetary policy & interest rates

d)

Examples of fiscal policy (i.e. Reaganomics, child tax credit, etc.)