CE 13c Review: Question Preview (ID: 14284)

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Which amendment authorizes Congress to tax personal and business incomes?
a) 16th
b) 14th
c) 1st
d) 6th

Increased government spending will result in...?
a) Increased demand
b) Decreased demand
c) Lower taxes
d) Lower production

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) Global trade decreases
d) Pollution increases

When taxes increase, what happens to spending by consumers and businesses?
a) It decreases
b) It increases
c) It stays the same
d) Borrowing decreases

Higher taxes are usually a result of...
a) Increased government spending
b) Decreased government spending
c) Increased consumer spending
d) Increased global trade

What happens when the government decreases spending?
a) Taxes and employment decrease
b) Taxes and employment increase
c) Nothing happens
d) Production increases

Increased government borrowing causes...
a) Less funds for consumers and businesses to borrow
b) More funds for consumers and businesses to borrow
c) Nothing happens.
d) Global trade increases

When the government decreases borrowing, what is most likely to happen?
a) Consumers and businesses have more funds to borrow.
b) Consumers and businesses have less funds to borrow.
c) Nothing happens.
d) The government shuts down.

The 16th Amendment allows Congress to tax..
a) Personal and business incomes
b) Nothing
c) Food
d) Clothing

Decreased government spending can cause...
a) Lower production and taxes
b) Higher production and taxes
c) Everything stays the same
d) Higher production with lower taxes

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