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