Unit #11 Review: Question Preview (ID: 25196)


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If the government decreased its spending, what would be the result?
a) Higher reserve amount b) Higher prices c) Lower taxes d) Lower discount rate
Who manages the amount of money in the economy and is our nation's central bank?
a) Federal Bureau of Investigation b) Federal Communications Commission c) Federal Trade Commission d) Federal Reserve System
What government action would lead to an increase in demand, production, and production?
a) An increase of the reserve amount b) An increase of the discount rate c) An increase in spending d) An increase in borrowing
If the government wanted to slow down the economy, it might increase borrowing because it will result in -
a) less money for individuals to borrow for spending b) a reduction of demand, employment, and production c) lower taxes d) an increase of government spending
Which of the following would be the best way for the government to raise money?
a) Increase taxes b) Increase spending c) Decrease borrowing d) Increase prices
What would lead to individuals and business having less money to spend?
a) Increased government regulations b) Government tax increases c) A decrease in the supply of a good d) Decreased government spending
To protect consumers, federal agencies -
a) write contracts for consumers b) establish guidelines for public health c) ask the Supreme Court to research a business d) approve all consumer contracts before they take effect
The right of private property is protected by-
a) the First Amendment b) the Federal Reserve System c) government securities d) negotiated contracts
The government uses tax revenue, borrowed funds, and fees to pay for -
a) the economic flow b) incentives c) opportunity cost d) public goods and services
If a business violates a consumer's rights, he/she may -
a) do nothing b) take legal action c) write a contrct d) write his/her congressperson
Schools, highways, and libraries are referred to as public services because they -
a) encourage cooperation between government branches b) are funded through individual investment c) are created by large corporations d) provide benefits to many people
Fees are the money -
a) charged for licenses b) charged for the use of highways c) an individual or business earns d) banks issue for depositing money
The government issues currency and coins to -
a) help make the exchange of goods and services easier b) control the exchange of goods and services c) promote monopolies d) promote global trade
Items and actions provided by the government because individuals acting alone could not provide them efficiently are called -
a) incentives b) public goods and services c) opportunity cost d) revenue
Federal Reserve Notes, deposits accessed by debt cards, and coins are all types of -
a) resources b) revenue c) incentives d) money
Taxes are necessary because the government needs a way to raise money to -
a) promote monopolies b) carry out laws and regulations c) control the economic flow d) provide incentives for government officials
The most important source of revenue for the government is -
a) interest b) taxes c) fees d) tolls
Which amendment allows Congress to take our income?
a) 1st b) 5th c) 16th d) 18th
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