Governments Role as Tax Collector
1. Which of the following is NOT considered a personal income tax?
A. Federal Individual Income Tax
B. State Individual Income Tax
C. Social Security Tax (FICA)
D. National Individual Security Tax
D. National Individual Security Tax
2. Which type of monetary policy involves increasing the growth of the money
supply?
A. Contractionary monetary policy
B. Expansionary monetary policy
C. Reserve monetary policy
D. Federal monetary policy
A. Contractionary monetary policy
Which of the following is NOT one of the three branches of government?
A. Sheriff’s branch
B. Executive branch
C. Legislative branch
D. Judicial branch
A. Sheriff’s branch
Which of the following is NOT true of the government?
A. It increases/decreases tax rates
B. It controls the retirement of all U.S. citizens
C. It regulates the amount of money in the economy with the Federal
Reserve Bank
D. It negotiates international treaties and trade agreements
B. It controls the retirement of all U.S. citizens
The Sherman Antitrust Act of 1890 did which of the following?
A. Established the Federal Trade Commission
B. Increased sales taxes and allowed the federal government to collect
income tax
C. Established the Federal Reserve Bank
D. Allowed the government to break up companies with control of a
market
D. Allowed the government to break up companies with control of a
market
Corporate income taxes are NOT imposed by which of the following?
A. State governments
B. Local governments
C. Foreign governments
D. Universal governments
D. Universal governments
3. Which of the following allows eligible institutions to borrow money from the central
bank to meet reserve requirements?
A. Discount rate
B. Reserve policy
C. Discount window
D. Inflation targeting
C. Discount window
Statutory law is written by which branch of the government?
A. Administrative branch
B. Executive branch
C. Legislative branch
D. Judicial branch
C. Legislative branch
Which of the following is true of the Federal Trade Commission?
A. Demotes fair competition
B. Prevents monopolies
C. Breaks up companies with control of a market
D. Prevents false/deceptive advertising
D. Prevents false/deceptive advertising
3. What year was the Federal Trade Commission established?
A. 1890
B. 1901
C. 1915
D. 1924
C. 1915
3. Sales taxes are added to the price of goods and services at the time of purchase.
A. True
B. False
A. True
4. How does the Federal Reserve slow inflation and economic growth?
A. Buying securities
B. Stimulating economic growth
C. Lowering interest rates
D. Raising interest rates
D. Raising interest rates
Where did common law begin?
A. France
B. England
C. Italy
D. Spain
B. England
Which of the following is NOT information published by the government which
businesses can use?
A. Forbes 40 under 40
B. Rate of inflation
C. Unemployment statistics
D. Consumer spending
A. Forbes 40 under 40
What is the term for the removal or relaxation of the rules affecting businesses
within certain industries?
A. Regulation
B. Deregulation
C. Exertion
D. Inexertion
B. Deregulation
4. Which of the following is an example of an item with excise tax?
A. Gasoline
B. Clothing
C. Produce
D. Processed snack foods
A. Gasoline
Monetary policy allows central banks to achieve price stability/
fluctuation and help maintain economic stability/fluctuation.
1. Stability
2. Fluctuation
When union representatives and management come together to discuss issues
between employees and employers, it is known as which of the following?
A. Collective bargaining
B. Glass ceiling
C. Union strike
D. Affirmative action
A. Collective bargaining
Which of the following is NOT regulated by the government?
A. Local employment agencies
B. Public schools
C. Private schools
D. Funding for retraining of workers
C. Private schools
The Federal Reserve seeks an unemployment rate below _____________
percent.
A. 2.8
B. 3.4
C. 5.7
D. 6.5
D. 6.5
5. Which of the following is the term for a special tax placed on foreign goods sold in
the United States?
A. Tea tax
B. Tariffs
C. Excise tax
D. Customs
B. Tariffs
Reserve ________ is a regulation requiring commercial banks to
keep a certain ________ of the money customers deposit on reserve
each night. This money must be in the bank’s _____ or at the closest
Federal Reserve bank.
1. Requirements
2. Percentage
3. Vault
The Taft-Hartley Act of 1947 legalized which of the following?
A. Labor unions
B. Featherbedding
C. Closed shops
D. Right-to-work laws
D. Right-to-work laws
Which of the following is NOT an agency which protects consumers?
A. Consumer Price Fixing Commission
B. Consumer Product Safety Commission
C. Fair Packaging and Labeling Act
D. Fair Credit Reporting Act
A. Consumer Price Fixing Commission
The government discourages competition among businesses. T or F
The Small Business Administration provides low-cost loans, advice and
other assistance to small businesses. T or F
Common law is based on precedents established by judges’ decisions. T or F
1. F
2. T
3. T