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The United States government provides the following services except —
A. satellite radio
B. postal service
C. national defense
D. interstate highways
A. satellite radio
Other than taxes, how else does government get money to pay for public goods and services?
A. Donations
B. Businesses
C. Borrowed money
D. Corporations
C. Borrowed money
Look at the graph. (15)
In which year was the Federal Reserve most likely trying to discourage banks and consumers from borrowing money?
A. 2005
B. 2006
C. 2007
D. 2008
C. 2007
In 1902, President Theodore Roosevelt acted to resolve a large strike by coal miners in Pennsylvania by encouraging an agreement between miners and coal mine owners.
How did ending the strike most likely help the economy of the United States?
A. by ensuring access to an important product
B. by decreasing the need for government regulation
C. by causing business owners to improve safety conditions
D. by reducing the wages of workers
A. by ensuring access to an important product
Which of the following is not a function of money?
A. Serves as an accepted method of payment
B. Serves as a means of wealth
C. Serves as a method of purchasing on credit
D. Serves as a measure of value
C. Serves as a method of purchasing on credit
What would be the effect of having several grocery stores in the same area?
A. The demand of food would increase due to more variety.
B. The supply of food would decrease due to demand.
C. Prices would decrease as the result of competition.
D. Prices would remain the same initially, then rise.
C. Prices would decrease as the result of competition.
Look at the Venn diagram. (7)
Which of the following best completes the shaded area on the diagram?
A. Earn money for the government
B. Owned by private companies
C. Provide benefits to many people
D. Offer protection to citizens
C. Provide benefits to many people
What is the most likely result of a policy intended to stimulate economic growth?
A. Economic equity will increase.
B. Economic efficiency will increase.
C. Unemployment will rise.
D. Inflation will rise.
D. Inflation will rise.
Which goal will be achieved through a tight money policy?
A. consumers have increased access to money
B. inflation is controlled
C. more small businesses open
D. the economy expands
B. inflation is controlled
Prior to the development of Federal Reserve notes, it was common to deposit precious metals and receive a certificate showing the value of the deposit.
In which category does this type of money belong?
A. fiat
B. commodity
C. bank
D. representative
D. representative
The United States Government promotes marketplace competition by —
A. engaging in global trade
B. prohibiting start-up businesses
C. encouraging monopolies
D. working to build trusts
A. engaging in global trade
In the United States, governments collect several different types of revenue or taxes from individuals and businesses.
What type of tax is the main source of revenue for the federal government?
A. Income tax
B. Property tax
C. Estate tax
D. Sales tax
A. Income tax
What does the 16th Amendment establish?
A. The adoption of a primary system
B. A progressive tax on income
C. An income to the Federal government
D. A progressive tax on property
E. An income to State governments
F. A progressive sales tax
B. A progressive tax on income
C. An income to the Federal government
How does the Federal Trade Commission help consumers?
A. by stopping unfair, deceptive, and fraudulent business practices
B. by advertising services and products with the lowest prices
C. by testing, rating, and ranking products in its monthly publications
D. by setting price limits on goods purchased from foreign countries
A. by stopping unfair, deceptive, and fraudulent business practices
Look at the graphic. (21)
The graphic shows a sweepstakes scam.
All of the following are ways the Federal Trade Commission (FTC) can protect consumers from these types of scams except —
A. fire all the employees at the company the FTC is investigating
B. investigate the company
C. sue the company
D. inform consumers how to protect themselves from scams
A. fire all the employees at the company the FTC is investigating
Read the information below and answer the question.
Mihir runs a lawn-mowing business. It is the only lawn-mowing business in town. Mihir charges $25 per lawn. Emily sees how much money Mihir makes mowing lawns. She is going to start her own lawn-mowing business. She wants more customers than Mihir has. Which price should Emily charge if she wants Mihir’s customers to use her business instead?
A. $20
B. $30
C. $25
D. $40
A. $20
What is the relationship between government spending and taxes?
A. Increased Spending = Higher Taxes
B. Increased Spending = Lower Taxes
C. There is no relationship between government spending and taxes.
D. Decreased Spending = Higher Taxes
A. Increased Spending = Higher Taxes
What is the relationship between government spending and employment?
A. Increased Spending = Increased Unemployment
B. Increased Spending = Decreased Employment
C. Increased Spending = Increased Employment
D. Decreased Spending = Decreased Unemployment
C. Increased Spending = Increased Employment
Use the table below to answer the question. (18)
Which factor best completes this table?
A. Encouraging personal savings during economic expansion
B. Slowing the rate of growth during economic expansion
C. Stimulating business investments during economic contraction
D. Reducing aggregate demand during economic contraction
C. Stimulating business investments during economic contraction
Julia purchased a new outfit at a local department store, but the store never received the payment. Julia most likely paid with —
A. currency
B. a Federal Reserve note
C. a check
D. coins
C. a check
The cost of manufacturing a specific good in a developing country is less than the cost to manufacture it in the United States. What is the most likely result if that country exports the good to U.S. markets?
A. Prices will decrease and the quantity produced will increase.
B. Prices will remain stable but quality will decline.
C. Companies will expand production to compete in the industry.
D. Congress will raise the rates on international tariffs.
A. Prices will decrease and the quantity produced will increase.
Use the excerpt below to answer the question.
The mission of the U.S. National Park Service (NPS) is to conserve the scenery, the natural and historic objects, and the wildlife in United States’ national parks, and to provide for the public’s enjoyment of these features in a manner that will leave them unimpaired for the enjoyment of future generations. —National Park Service Mission Statement
Which goal would a government pursue by creating the organization described in this excerpt?
A. increasing attendance rates in national parks
B. protecting scarce resources of the nation
C. ensuring that national parks are profitable
D. keeping national employment rates stable
B. protecting scarce resources of the nation
Look at the chart. (12)
Which economic trend is illustrated in the chart?
A. More jobs were available from 1995 to 2000.
B. Increased spending by other nations impacts spending in the United States.
C. Increased government spending leads to increased employment and production.
D. Production decreased from 2000 to 2005.
C. Increased government spending leads to increased employment and production.
The United States experienced severe financial crises in 1873, 1893, and 1907. The billionaire banker J.P. Morgan helped the U.S. Treasury to stabilize the economy in 1893 and 1907. What action did the U.S. government take in reaction to these financial crises?
A. It made J.P. Morgan the Secretary of the Treasury.
B. It introduced legislation to help the unemployed.
C. It reduced regulations to give financial markets more freedom.
D. It passed the Federal Reserve Act of 1913.
D. It passed the Federal Reserve Act of 1913.
Use the excerpt below to answer the question.
Securities Act of 1933 Often referred to as the “truth in securities” law, the Securities Act of 1933 has two basic objectives:
• require that investors receive financial and other significant information concerning securities being offered for public sale; and
• prohibit deceit, misrepresentations, and other fraud in the sale of securities. —U.S. Securities and Exchange Commission, 2013
Which of these best explains the purpose of this act?
A. to establish training and certification courses for investors
B. to help investors make informed decisions based on accurate data
C. to encourage privately owned businesses to become publicly owned companies
D. to help the economy grow by promoting the growth of large corporations
B. to help investors make informed decisions based on accurate data