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Government And The Economy
Test Description: A test
Instructions: Answer all questions to get your test result.
1) The United States supports business start-ups to
A
control which businesses are successful
B
control the marketplace
C
promote competition
D
promote monopolies
2) The Environmental Protection Agency fines a car manufacturer when it discovers that the company is not meeting emission standards for new cars, which can result in dangerous levels of air pollution. This is an example of a government agency -
A
taking complete control of business operations
B
regulating certain business practices
C
enforcing anti-trust legislation
D
supporting business start-ups
3) Which government agency regulates radio and television in the United States?
A
Federal Trade Commission (FTC)
B
Federal Communications Commission (FCC)
C
Food and Drug Administration (FDA)
D
Environmental Protection Agency (EPA)
4) The United States government encourages marketplace competition by -
A
supporting new businesses
B
taxing imports
C
limiting economic growth
D
developing monopolies
5) Which government agency would most likely advocate for people who purchase goods?
A
Environmental Protection Agency
B
Federal Trade Commission
C
Federal Reserve System
D
Federal Communications Commission
6) The amendment which authorizes personal and business income tax is the -
A
14th amendment
B
18th amendment
C
16th amendment
D
17th amendment
7) During the presidential campaign, candidate Andrew Dolan uses Lower Taxes Now as a campaign theme. When Dolan becomes president, Congress passes a two percent personal income tax reduction. The most likely result of this tax reduction is that -
A
businesses will lay-off workers
B
people will spend more money
C
businesses will limit production
D
people will work longer hours
8) What is the most likely result of increased government spending on nearly every citizen?
A
Increase in taxes
B
Reduction in government services
C
Decrease in taxes
D
Increase in the number of government employees
9) Identify the relationship between government spending and taxes.
A
Increased government spending may result in lower taxes.
B
Decreased government spending may result in higher taxes.
C
Increased government spending may result in higher taxes.
D
Decreased government spending may result in more government jobs.
10) Which of the following actions might the government take to slow down the economy?
A
Increase government spending
B
Lower taxes
C
Print more money
D
Decrease government spending
11) Calling a special session of Congress is an example of a check by the Executive branch over the
A
Judicial Branch
B
Legislative Branch
C
President
D
Supreme Court
12) One way the legislative branch checks the executive branch is to -
A
write laws.
B
call Congress into special session.
C
declare laws unconstitutional.
D
impeach the President.
13) Which is an example of checks and balances as listed in the Constitution of the United States?
A
The Supreme Court of the United States hears a case involving a violation of the First Amendment.
B
The Congress of the United States passes a law to regulate airline flights.
C
The President of the United States vetoes a bill passed by the United States Congress.
D
The Cabinet of the United States assists the executive branch in carrying out laws.
14) One way the President influences the policy making process is by -
A
giving the State of the Union Address.
B
introducing bills on the Senate floor.
C
declaring bills unconstitutional.
D
removing federal judges.
15) In the United States, who has the responsibility for declaring war?
A
President
B
State legislatures
C
Supreme Court
D
Congress
16) Enforcing laws, appointing cabinet members, and preparing budgets are the responsibilities of which branch of government?
A
State
B
Executive
C
Legislative
D
Judicial
17) When the Federal Reserve System wants to slow the economy, it does all these actions EXCEPT -
A
raise the discount rate
B
raise income taxes
C
increase reserve rates
D
sell government securities
18) The central bank for the United States is the -
A
Department of the Treasury
B
Federal Deposit Insurance Corporation
C
Federal Reserve System
D
Bank of America
19) To protect consumers, federal agencies -
A
write contracts for consumers
B
ask the Supreme Court to research businesses
C
approve all consumer contracts before they take effect
D
establish guidelines for public health and safety
20) In order to slow down the economy, the Federal Reserve would do which of the following?
A
Restrict the money supply
B
Raise taxes
C
Increase the money supply
D
Reduce interest rates
*select an answer for all questions
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