Public Goods and Services: Use page 162 in your notebook for help!
1. Everything outside of the balloon is the government and is part of the (private or public) sector.
2. ______B______taxes individuals and businesses.
a. Private Financial Institutions
b. Government
3. The government takes money from individuals and businesses. The money they take from individuals and businesses are called:
a. Income tax
b. Interest rate
4. The Constitution reads:
“The Congress shall have the power to lay and collect taxes on incomes…”
What amendment is quoted above?
a. Tenth
b. First
c. Fourteenth
d. Sixteenth
5. The government needs money to do all of the following EXCEPT:
a. Provide public goods and services to many people simultaneously
b. Rapidly increase the money supply to get inflation to rise quickly
c. To buy goods and services from businesses in the private sector
d. To pay people who work for the government in the private sector
6. Public or Private:
a. Public goods and services are provided by (individuals OR government).
b. Private means it is owned by (individuals OR government).
c. Highways and the Military are provided by (businesses OR government) because they are (private OR public) goods and services.
d. Public goods and services (would or would not) be available if individuals had to provide them.
e. Restaurants and Hospitals are provided by (businesses OR government) because they are (private OR public) goods and services.
7. Which of the following is TRUE of public goods and services?
a. An example is the store Hollister
b. Provides benefits to many simultaneously
c. Would likely be available if individuals had to provide them
d. Provided by businesses
Examples of Public Goods and Services
The Federal Reserve: Use page 164 and 166 in your notebook.
8. What is money?
a. Only currency that is backed by gold or silver
b. Anything accepted as a method of payment
c. Only paper money that is issued by government
9. All of the following are examples of money accepted in the United States EXCEPT:
a. Check from a friend
b. Federal Reserve Notes
c. Coins or Currency
d. Use of Credit Card
10.
People accept money issued by the United States Government in exchange for goods and service because:
a. Currency is valued higher than checks and debit cards
b. Currency is the only type of money accepted in the US
c. All currency is backed by gold and silver in the US
d. They have confidence in the government
11. From the statement below, circle the correct bolded answers:
The Federal Reserve was created so the government could help keep
inflation (high or low) and the value of the dollar (high or low).
12. Circle all of the statements below that are TRUE of the Federal Reserve:
13. All of the following are TRUE of the Federal Reserve, EXCEPT:
a. It is the Central Bank of the US.
b. It is the Government’s Bank.
c. It is a bank for Individuals
d. It controls the amount of money in the economy.
14. From the statements below, circle the correct bolded answer related to the roles (jobs) of the Federal Reserve:
a. Acts as the nations bank and the banks’ bank, which means it is the (central or private) bank
b. Has the duty to (maintain or decrease) the value of the national currency or dollar.
c. Regulates (banks or businesses) to ensure the soundness of the banking system and the safety of deposits
d. Manages the amount of money in the economy to try to keep inflation (high or low) and stable
For the following questions, match the role or job of the Federal Reserve to the Example!
15. ___B____ The Federal Reserve sends in bank examiners to make sure that banks are handling your deposits safely.
16. ___A____ The Federal Reserve decreases the money supply because the United States is in major inflation.
17. __C_____ The Federal Reserve loans money to banks and the government.
18. The Federal Reserve acts as the nation’s central bank by performing all of these actions EXCEPT:
a. It acts as the governments bank
b. Maintains the value of currency
c. Creating and printing currency
d. Controlling the amount of money in the economy
Government Interventions: Use page 168 in your notebook for help!
22. When there is too much money in the economy, we are in (inflation or recession).
23. When there is not enough money in the balloon, we are in (inflation or recession).
Government Taxing
Remember, our economy is like a balloon!19. Sometimes (government or individuals) get involved to help save the economy.
20. The balloon represents (all the money in the economy OR money the government gives us).
21. The person controlling the air pump represents (individuals or government).
24. The government sometimes increases taxes to save the economy.
- When the government increases taxes they are (putting money in or taking money out)
of the economy.
- When the government increases taxes, there are (more or less) funds available for people to spend.
25. The government sometimes decreases taxes to save the economy.
- When the government decreases taxes they are (putting money in or taking money out) of the economy.
- Since the government is decreasing taxes, there is a/an (increase or decrease) in demand, employment, and production.
Government Borrowing
26. When the government borrows more money they take more money from the Federal Reserve.
a. When there is increased government borrowing from the Federal Reserve, there is a/an (increase or decrease) in money available for Private Financial Institutions to get from the Federal Reserve.
b. When there is increased government borrowing, there is a/an (increase or decrease) in financial capital available for individuals and businesses.
c. When the government increases government borrowing they are (taking money out or putting money into) the economy.
27. When the government decreases borrowing, the government takes less money from the Federal Reserve.
a. When there is decreased government borrowing, there is a/an (increase) in money available for Private Financial Institutions to get from the Federal Reserve.
b. When there is decreased government borrowing, there is an (increase or decrease) in financial capital available for individuals and businesses.
c. When the government decreases government borrowing they are (taking money out or putting money into) the economy.
Government Spending
28. The government sometimes increases government spending by buying more products from businesses or hiring more government workers.
a. When the government increases government spending they are (putting money in or taking money out) of the economy.
b. If the government increases government spending, there is a/an (increase or decrease) in demand, employment, and production.
c. If the government is increasing government spending, taxes will likely (increase or decrease).
29. The government sometimes decreases government spending by buying less products from businesses or hiring less government workers.
a. When the government decreases government spending they are (putting money in or taking money out) of the economy.
b. Since the government decreasing government spending, there is a/an (increase or decrease) in demand, employment, and production.
c. If the government is decreasing government spending, taxes will likely (increase or decrease).
Put it All Together: Taxes, Borrowing, and Spending!
30. All of the following are situations when the US Government would intervene in the economy, EXCEPT:
d. When the benefits of the policy outweigh the costs
e. When citizens are put in danger by businesses
f. When there is not enough competition in the market
g. When the economy is stable and citizens are safe
31. When the government gets involved in the economy it is called an intervention. The government gets involved to save the economy from inflation and recession in three ways!
DIRECTIONS: Fill –in the answers from your notes. Then, draw arrows to help you remember whether the government intervention will increase or decrease.
Inflation / RecessionT__axes______
B__orrowing______
S__Spending______
32. Oh no! The economy is in trouble! There is too much money in the economy and a gallon of milk has increased from $4.00 to $20.00 in one week. The government is in (recession or inflation) and the government needs to (put money in or take money out) of the economy.
33. Oh no! The economy is in trouble! There is not enough money in the economy and many people are losing their jobs! The government is in (recession or inflation) and the government needs to (put money in or take money out) of the economy.
34. Which government action would best complete the blank table below?
Effects of ??????Increased demand
Increased employment
Increased production
a. Increased government spending
b. Increased government borrowing
c. Decreased government spending
d. Decreased government taxing
35. Increased government spending may result in ______taxes.
a. Lower
b. Higher
c. No
d. None of the above – spending and taxing aren’t connected
36. Prices are rapidly increasing in the economy and the value of the dollar is falling. All of the following are ways the President and Congress can intervene to fix the economy, EXCEPT:
a. Increase Taxes for Businesses
b. Increase Taxes for Individuals
c. Increase Government Spending
d. Increase Government Borrowing
37. The economy is in trouble. People are losing their jobs and businesses are closing. All of the following are ways the President and Congress can intervene to fix the economy, EXCEPT:
a. Decrease Taxes for Businesses
b. Decrease Taxes for Individuals
c. Decrease Government Spending
d. Decrease Government Borrowing
38. Whose job is it to manage how much money individuals and businesses pay in taxes?
a. Federal Reserve
b. The President and Congress
39. If the economy is in inflation! The value of the dollar is decreasing and prices are rapidly increasing. Which of the following would work to fix the economy?
a. The Federal Reserve will raise taxes
b. The Federal Reserve will decrease taxes
c. The President and Congress will increase government borrowing.
d. The President and Congress will increase government spending.
Consumer Protections Extra Practice: Use page 170 in your notebook for help!
40. Government agencies are part of the ______branch.
a. Legislative
b. Executive
c. Judicial
41. True or False: Government agencies get involved in the protect consumers.
42. True or False: Government agencies get involved to promote marketplace competition.
Directions: Fill in the chart below with the correct government agency!
Actions the US Government Takes / Who acts? / Reason?Protect the environment / 43.
EPA / *Make sure Americans won’t get sick from pollution
*Make sure the environment isn’t damaged
Enforce anti-trust legislation / 44. SBA
45.FCC / *Promote marketplace competition so there are lower prices and higher quality for consumers
Engage in global trade / 46. FTC / *Promote marketplace competition so there are lower prices and higher quality for consumers
Support business start-ups / 47.SBA / *Promote marketplace competition so there are lower prices and higher quality for consumers
Establish guidelines that protect public health and safety / 48.EPA
49.FCC
50.FTC / *Make sure Americans won’t be hurt or made sick from goods and services
51. A government agency fined Verizon for dumping broken phones in the Chesapeake Bay. What agency would most likely do this?
a. Environmental Protection Agency
b. Federal Communications Commission
c. Federal Trade Commission
d. Food and Drug Administration
52. The SBA gave advice to a new business that was trying to open its first store! What is the government doing in this example?
a. Enforcing antitrust legislation
b. Supporting business start-ups
c. Engaging in global trade
d. Discouraging competition
53. A government agency fined the Today Show for airing curse words in a recent broadcast. Which agency is responsible for overseeing media broadcasting?
a. Environmental Protection Agency
b. Federal Communications Commission
c. Federal Trade Commission
d. Food and Drug Administration
54. True or False: All government agencies break-up monopolies.
55. All of the following are ways the government can promote marketplace competition, EXCEPT:
a. Engage in global trade
b. Support business start-ups
c. Allowing monopolies
d. Enforce anti-trade legislation
56. What is the purpose of anti-trust legislation?
a. Discourage monopolies
b. Discourage competition
c. Encourage monopolies
d. Supporting new businesses
57. The US Government told AT&T and T-Mobile, they would sue them if they became one company because they would control the market of cell phone service. Which executive agency would have sued them?
a. Environmental Protection Agency
b. Federal Communications Commission
c. Federal Trade Commission
d. Food and Drug Administration
58. The best title for the chart below is: “Ways the Government ______”
a. Protects consumer rights
b. Promotes marketplace competition
59. The best title for the chart below is: “Ways the Government ______”.
a. Protects consumer rights
b. Promotes marketplace competition
60. Which of the following is NOT true of government agencies?
a. All government agencies break-up monopolies
b. They are a part of the Executive Branch
c. Environmental Protection Agency is an example
- Oversee the way individuals and companies do business