CE.13 Government and the Economy

Which of the following are responsibilities of the Fed?

• Regulate banks

• Enforce antitrust legislation

• Control interest rates

• Ensure safety of deposits

• Set tax rates

Lowering interest rates -

• Encourages spending

• Encourages saving

• Encourages monopolies

• Encourages inflation

All of the following are public goods and services EXCEPT -

• Highways

• National defense

• Street lights

• These are all public goods

Taxes levied on purchases are called

• Property tax

• Sales tax

• Income tax

• Purchase tax

The main source of revenue for local governments is -

• Income tax and property tax

• Property tax and sales tax

• Sales tax and income tax

• Property tax and income tax

The main source of revenue for a state is -

• Income tax and sales tax

• Income tax and property tax

• Sales tax and property tax

• Property tax and income tax

The main source of revenue for the Federal Government is -

• Income tax and property tax

• Sales tax and property tax

• Income tax

• Sales tax

Admission to national parks, stamps, and government tolls are considered -

• Taxes

• Fines

• Fees

• Public goods

How does the government promote marketplace competition?

• Antitrust legislation

• Price fixing

• Policies on global trade

• Business start-ups

• Raising interest rates

Which level of government can tax? (check all that can)

• National (Federal)

• State

• Local

• Only IRS can tax