Questions - Fasttrack
Unit CE 13 - The Government's Role in the U.S. Economy
|Review Questions for CE 13 in Fasttrack Civics - The Government's
Role in the U.S. Economy
Questions about the government's role in promoting competition and regulating business:
1. The main purpose of the two laws shown in the graphic above is to
A. make borrowing easier.
B. limit bank interest rates.
C. prohibit illegal monopolies.
D. make it easier to sue businesses.
2. Tell two things the federal government agency shown in the graphic above does to help new businesses get started.
3. An important job of the FTC (Federal Trade Commission) is to
A. arrange business sales.
B. control pollution.
C. regulate banks.
D. investigate unfair business practices.
4. Tell two businesses that the FCC (Federal Communications Commission) regulates.
5. What is the name of the federal agency that sets rules to reduce pollution created by businesses?
Questions about public goods and services:
6. The poster above shows examples of things provided by ____________ that are called public goods and services. (Answer choices: the government, businesses, individuals.)
7. One characteristic of public goods and services is that they ___________ be used by many people at the same time. (Answer choices: can, cannot.)
8. Most public goods and services ___________ be easily provided by individuals for themselves. (Answer choices: can, cannot.)
Questions about government taxes, spending, and borrowing:
9. What are the three main sources of money that the government uses to pay for public goods and services?
10. The tax collected on the sale of items in a store is called a __________ tax. (Answer choices: sales, property, income.)
11. The tax collected on homes and other buildings is called the __________ tax. (Answer choices: sales, real estate, personal property.)
12. The tax collected on one's earnings from a job is called the __________ tax. (Answer choices: sales, property, income.)
13. A tax increase tends to _____________ the overall economy, by reducing the amount of money available for spending by individuals and business. (Answer choices: boost, slow.)
14. An increase in government spending often ____________ the overall economy temporarily, by increasing employment and production. (Answer choices: boosts, slows.)
15. An increase in government spending will most likely result in a(n) ___________ in taxes sooner or later. (Answer choices: increase, decrease.)
Questions about the Federal Reserve System:
16. The Federal Reserve is the ____________ bank of the United States. (Answer choices: private, public, central.)
17. The Federal Reserve is mainly responsible for regulating the nation's __________ . (Answer choices: money supply, taxes, budget.)
18. The Federal Reserve has the main responsibility to maintain the ______ of the dollar. (Answer choices: color, value, size.)
Questions about the ways the government protects property rights and consumer rights:
19. The right to private property is protected by the government through laws and courts that enforce ____________ . (Answer choices: speed limits, taxes, contracts.)
20. Government agencies such as the Food and Drug Administration and the Consumer Product Safety Commission are designed mainly to protect the rights of ____________. (Answer choices: business, government, consumers.)
21. If a consumer is injured by a product sold by a business, does the law allow the consumer to sue the business in court?
Questions about currency:
22. The word "currency" refers to the _________ used in a particular country. (Answer choices: cars, taxes, money.)
23. Money has value because people accept it in exchange for goods and services, and have confidence in the nation's ___________. (Answer choices: gold supply, silver supply, government.)
24. "Federal Reserve Notes" are the __________ used in the U.S. (Answer choices: coins, savings bonds, paper money.)
25. When the Federal Reserve keeps track of the money supply in the U.S., it counts not just coins and paper money, but also deposits in bank accounts that can be accessed with checks or with _______ cards. (Answer choices: credit, debit, insurance.)
Copyright 2007, 2015 by David Burns
All rights reserved
Copyright 2006, 2015 by David A. Burns. All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means without the prior written permission of the copyright holder. Contact: Fasttrack Civics Project, 6215 Lavell Court, Springfield, VA 22152.
This work is a guide to the Virginia Civics SOL exam, and follows the organization and content of the Virginia Standards of Learning framework for that subject. Some pages necessarily include phrases or sentences found in the Virginia SOL, which is available online from the Virginia Department of Education. The author’s copyright extends to this work's original text and graphic content, unique design and layout, and other related material.
Illustrations appearing in this publication are taken from sources in the public domain and from private collections used by permission. Sources include: the Dover Pictorial Archive, the Library of Congress, The Hart Publishing Co., Corel Corporation and its licensors, Nova Development Corporation and its licensors, and others. Maps were created or adapted by the author using reference maps from the United States Geological Survey and Cartesia Software.