Name: _______________________
Unit 8 Study Guide:
Government and the Economy
SOL: CE.13
1. Enforcing antitrust laws, global trade, and
helping businesses to start up are all ways
the government promotes…
Competition
2. Why does the United States government
enforce anti-trust laws?
Monopolies
3. What government agency oversees radio
and TV broadcasts?
FCC
4. Which government agency tries to
prevent air and water pollution?
EPA
5. What government agency protects
consumers buying monitoring the products
and actions of businesses?
FTC
6. When the government builds a highway
they are producing a …
Public good
7. True or False: Most public goods would
not be available if individuals had to produce
them.
True
8. When the United States Post Office
delivers the mail they are providing a …
Public Service
9. The government produces public goods
because they benefit …
many people
10. National defense, public schools, and
public libraries are all examples of –
public goods and services
11. The government collects taxes to pay for
and provide …
public goods and services
12. Besides collecting taxes and borrowing
funds how else can the government pay for
public goods and services?
fees
13. What is the government trying to
influence when it gets involved in taxing,
spending, and borrowing?
The economy
14. What will happen to our taxes if the
government wants to spend more money?
Taxes will increase
15. If the government reduces the taxes on
its citizens how will it affect business and
individual spending?
Spending will increase
16. If the government raises the taxes on
its citizens how will it affect business and
individual spending?
Spending will decrease
17. If the government borrows more funds
how will it affect borrowing by businesses
and individuals?
Borrowing will decrease
18. What should happen to demand,
production, and employment if the
government spends more money?
They will increase
19. What should happen to demand,
production, and employment if the
government spends less money?
They will decrease
30. What will happen to the economy if the
Federal Reserve raises rates or sells
government securities?
Economy will slow down
20. What amendment allows the government
to tax your income?
16th Amendment
31. What does the government issue to make
it easier to exchange goods and services?
Money
21. The right of private property is
protected by –
Negotiated contracts
32. Why do people accept and use the money
the government issues?
People have confidence in the government
22. Contracts are enforceable by the –
law
33. What are Checks, Debit Cards, Coins,
and Federal Reserve Notes examples of?
Money
23. To protect consumers, federal agencies
establish guidelines for public …
health and safety
24/25. What can consumers do if they are
harmed by a product or a company
intentionally misleads them about a product?
Take legal action
26. It is often called the “Banker’s Bank”,
but what is the name for the central bank of
the United States?
The Federal Reserve
27. Who can control interest rates, regulate
the money supply to keep inflation low, and
regulate banks?
The Federal Reserve
28. What will happen to the economy if the
Federal Reserve lowers the discount rate?
Economy will grow
29. What will happen to the economy if the
Federal Reserve lowers the reserve
requirement?
Economy will grow