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CE 13c Review
Test Description: Review for CE 13c.
Instructions: Answer all questions to get your test result.
1) Which amendment authorizes Congress to tax personal and business incomes?
A
6th
B
1st
C
16th
D
14th
2) Increased government spending will result in...?
A
Lower production
B
Lower taxes
C
Decreased demand
D
Increased demand
3) What happens when the government lowers taxes?
A
Pollution increases
B
Global trade decreases
C
Consumers and businesses have more money to spend.
D
Consumers and businesses have less money to spend.
4) When taxes increase, what happens to spending by consumers and businesses?
A
It increases
B
It stays the same
C
Borrowing decreases
D
It decreases
5) Higher taxes are usually a result of...
A
Increased consumer spending
B
Increased government spending
C
Increased global trade
D
Decreased government spending
6) What happens when the government decreases spending?
A
Nothing happens
B
Taxes and employment decrease
C
Taxes and employment increase
D
Production increases
7) Increased government borrowing causes...
A
Nothing happens.
B
Global trade increases
C
More funds for consumers and businesses to borrow
D
Less funds for consumers and businesses to borrow
8) When the government decreases borrowing, what is most likely to happen?
A
Consumers and businesses have less funds to borrow.
B
The government shuts down.
C
Nothing happens.
D
Consumers and businesses have more funds to borrow.
9) The 16th Amendment allows Congress to tax..
A
Personal and business incomes
B
Nothing
C
Clothing
D
Food
10) Decreased government spending can cause...
A
Lower production and taxes
B
Everything stays the same
C
Higher production and taxes
D
Higher production with lower taxes
*select an answer for all questions
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