Economics, Unit 6, Lesson 10: Unit Assessment: Government and the Economy
1. D - Medicare provides health care for people over 65, and Medicaid offers benefits for low-income families and individuals.
2. C - mandatory spending programs
3. A - sales tax and individual income taxes
4. B - The federal Reserve coordinates all regulatory activities and examines banks periodically.
5. D - As interest rates rise, people generally keep their wealth in assets that pay returns, restricting the money supply.
6. A - a cash deposit into the banking system on the money supply.
7. C - It would force banks to recall a significant number of loans, which would hurt many borrowers.
8. D - benefits to older citizens, surviving family members of wage earners, and people with certain disabilities
9. C - So that the government can pay bills as they come due
10. D - An operating budget is for day-to-day expenses; a capital budget is for investment spending.
11. A - a social welfare program providing benefits to people who meet certain eligibility requirements
12. C - regressive tax.
13. A - The tax represents a larger proportion of Josh's income.
14. D - Your employer sends it to the federal government to help pay your income tax bill,
15. D - the convenience store on the corner
16. D - all of the above
17. B - by Congress and the White House.
18. A - there is a budget surplus.
19. A - loan money to the government.
20. B - most states require a balanced budget for state spending.
21. D - to lessen the effect of natural business cycles
22. D - to provide consumers with access to funds for business expansion
23. C - 12
24. D - The economy is expanding quickly and inflation is a concern.
25. A - As interest rates decrease, demand for money increases.
26. The money the government spends creates jobs which in turn could create a chain reaction in the economy.
27. A good tax should have simplicity, efficiency, certainty, and equity. By simplicity, we mean tax laws should be easily understood. By efficiency, we mean government administrators should be able to collect taxes without spending too much time or money. By certainty, we mean it should be clear to the taxpayer when a tax is due, how much money is due, and how the tax should be paid. By equity, we mean the tax system should be fair; no one should bear too much or too little of the tax burden.
