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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
promote competition
B
control the marketplace
C
control which businesses are successful
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
regulating certain business practices
B
supporting business start-ups
C
taking complete control of business operations
D
enforcing anti-trust legislation
3) Which government agency regulates radio and television in the United States?
A
Federal Trade Commission (FTC)
B
Food and Drug Administration (FDA)
C
Environmental Protection Agency (EPA)
D
Federal Communications Commission (FCC)
4) The United States government encourages marketplace competition by -
A
taxing imports
B
developing monopolies
C
limiting economic growth
D
supporting new businesses
5) Which government agency would most likely advocate for people who purchase goods?
A
Environmental Protection Agency
B
Federal Communications Commission
C
Federal Trade Commission
D
Federal Reserve System
6) The amendment which authorizes personal and business income tax is the -
A
18th amendment
B
16th amendment
C
14th 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
people will work longer hours
B
people will spend more money
C
businesses will lay-off workers
D
businesses will limit production
8) What is the most likely result of increased government spending on nearly every citizen?
A
Decrease in taxes
B
Increase in taxes
C
Reduction in government services
D
Increase in the number of government employees
9) Identify the relationship between government spending and taxes.
A
Decreased government spending may result in higher taxes.
B
Decreased government spending may result in more government jobs.
C
Increased government spending may result in lower taxes.
D
Increased government spending may result in higher taxes.
10) Which of the following actions might the government take to slow down the economy?
A
Print more money
B
Lower taxes
C
Increase government spending
D
Decrease government spending
11) Calling a special session of Congress is an example of a check by the Executive branch over the
A
Legislative Branch
B
Supreme Court
C
Judicial Branch
D
President
12) One way the legislative branch checks the executive branch is to -
A
write laws.
B
declare laws unconstitutional.
C
call Congress into special session.
D
impeach the President.
13) Which is an example of checks and balances as listed in the Constitution of the United States?
A
The Cabinet of the United States assists the executive branch in carrying out laws.
B
The Supreme Court of the United States hears a case involving a violation of the First Amendment.
C
The Congress of the United States passes a law to regulate airline flights.
D
The President of the United States vetoes a bill passed by the United States Congress.
14) One way the President influences the policy making process is by -
A
removing federal judges.
B
giving the State of the Union Address.
C
declaring bills unconstitutional.
D
introducing bills on the Senate floor.
15) In the United States, who has the responsibility for declaring war?
A
State legislatures
B
Congress
C
Supreme Court
D
President
16) Enforcing laws, appointing cabinet members, and preparing budgets are the responsibilities of which branch of government?
A
State
B
Judicial
C
Legislative
D
Executive
17) When the Federal Reserve System wants to slow the economy, it does all these actions EXCEPT -
A
sell government securities
B
increase reserve rates
C
raise the discount rate
D
raise income taxes
18) The central bank for the United States is the -
A
Bank of America
B
Federal Deposit Insurance Corporation
C
Department of the Treasury
D
Federal Reserve System
19) To protect consumers, federal agencies -
A
approve all consumer contracts before they take effect
B
ask the Supreme Court to research businesses
C
write contracts for consumers
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
Reduce interest rates
B
Increase the money supply
C
Raise taxes
D
Restrict the money supply
*select an answer for all questions
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