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Government's Role in Business

Total questions: 32

Worksheet time: 16mins

Name
Class
Date
1.

Which of the following is NOT true of the government?

a)

It increases/decreases tax rates

b)

It controls the retirement of all U.S. citizens

c)

It regulates the amount of money in the economy with the Federal Reserve Bank

d)

It negotiates international treaties and trade agreements

2.

What did the Taft-Hartley Act of 1947 legalize?

a)

Closed shops

b)

Labor Unions

c)

Right-to-work laws

d)

Collective bargaining

3.

When union representatives and management come together to discuss issues arising between employees and employers this is known as which of the following?

a)

Featherbedding

b)

Unionizing

c)

Striking

d)

Collective Bargaining

4.

Which of the following determines the size and rate of growth of the money supply?

a)

Open markets

b)

Monetary Policy

c)

Grievance procedure

d)

Unionization

5.

Which of the following correctly lists the three branches of government?

a)

Executive, legislative, judicial

b)

Judicial, administrative, and sheriffs

c)

Administrative, legislative and sheriffs

d)

Executive, statutory and administrative

6.

Which of the following accurately defines tariff?

a)

Law based on precedents established by judges decisions

b)

A tax paid on land, structures and other property owned

c)

A special tax placed on foreign goods sold in the United States

d)

Law set forth by administrative agencies and commissions

7.

The Federal Reserve seeks an unemployment rate below__ percent.

a)

2.8

b)

3.4

c)

5.7

d)

6.5

8.

What is the term for the removal or relaxation of the rules affecting businesses within certain industries?

a)

Regulation

b)

Deregulation

c)

Exertion

d)

Inexertion

9.

What year was the Federal Trade Commission established?

a)

1890

b)

1901

c)

1915

d)

1924

10.

The Sherman Antitrust Act of 1890 did which of the following?

a)

Established the Federal Trade Commission

b)

Increased sales taxes and allowed the federal government to collect income tax.

c)

Established the Federal Reserve Bank

d)

Allowed the government to break up companies with control of a market

11.

Common law is based on precedents established by judges' decisions.

a)

True

b)

False

12.

The Small Business Administration provides low-cost loans, advice and other assistance to small businesses.

a)

True

b)

False

13.

Reserve requirements is a regulation requiring commercial banks to keep a certain percentage of the money customers deposit on reserve each night. This money must be in the bank's vault or at the closest Federal Reserve Bank.

a)

True

b)

False

14.

How does the Federal Reserve slow inflation and economic growth?

a)

Buying securities

b)

Stimulating economic growth

c)

Lowering interest rates

d)

Raising interest rates

15.

Which of the following allows eligible institutions to borrow money from the central bank to meet reserve requirements?

a)

Discount Rate

b)

Reserve Policy

c)

Discount Window

d)

Inflation Targeting

16.

Which type of monetary policy involves increasing the growth of the money supply?

a)

Contractionary Monetary Policy

b)

Expansionary Monetary Policy

c)

Reserve Monetary Policy

d)

Federal Monetary Policy

17.

The Taft-Hartley Act of 1947 legalized which of the following?

a)

Labor unions

b)

Featherbedding

c)

Closed shops

d)

Right-to-work laws

18.

When union representatives and management come together to discuss issues between employees and employers, it is known as which of the following?

a)

Collective bargaining

b)

Glass ceiling

c)

Union strike

d)

Affirmative action

19.

Sales taxes are added to the price of goods and services at the time of purchase.

a)

True

b)

False

20.

Which of the following is true of the Federal Trade Commission?

a)

Demotes fair competition

b)

Prevents monopolies

c)

Breaks up companies with control of a market

d)

Prevents false/deceptive advertising

21.

Which of the following is NOT information published by the government which businesses can use?

a)

Forbes 40 under 40

b)

Rate of inflation

c)

Unemployment statistics

d)

Consumer spending

22.

The government discourages competition among businesses.

a)

True

b)

False

23.

Which of the following is NOT regulated by the government?

a)

Local employment agencies

b)

Public schools

c)

Private schools

d)

Funding for retaining of workers

24.

Which of the following is NOT an agency which protects consumers?

a)

Consumer Price Fixing Commission

b)

Consumer Product Safety Commission

c)

Fair Packaging & Labeling Act

d)

Fair Credit Reporting Act

25.

Which of the following is NOT considered a personal income tax?

a)

Federal Individual Income Tax

b)

State Individual Income Tax

c)

Social security Tax (FICA)

d)

National Individual Security Tax

26.

Corporate income taxes are NOT imposed by which of the following?

a)

State governments

b)

Local governments

c)

Foreign governments

d)

Universal governments

27.

Which of the following is an example of an item with excise tax?

a)

Gasoline

b)

Clothing

c)

Produce

d)

Processed snack foods

28.

Which of the following is the term for a special tax placed on foreign goods sold in the United States?

a)

Tea Tax

b)

Tariffs

c)

Excise Tax

d)

Customs

29.

Which of the following is NOT one of the three branches of government?

a)

Sheriff's Branch

b)

Executive Branch

c)

Legislative Branch

d)

Judicial Branch

30.

Statutory law is written by which branch of the government?

a)

Administrative Branch

b)

Executive Branch

c)

Legislative Brancgh

d)

Judicial Branch

31.

Where did common law begin?

a)

France

b)

England

c)

Italy

d)

Spain

32.

Select the correct words from the two options in the underlined sections.

Monetary policy allows central banks to achieve price stability/fluctuation and help maintain economic stability/fluctuation.

a)

1st underline:

Stability

b)

1st underline: Fluctuation

c)

2nd underline:

Stability

d)

2nd underline:

Fluctuation