Civics and Economics Strand Test United States Economy

Civics and Economics Strand Test: United States Economy The Role of Government in the Economy Jason Baldwin, Middle School Coordinator Accomack County Public Schools Summer 2008

CE. 10 a An individual who has succeeded in business by taking risks is known as— A. B. C. D. a lawyer. an accountant. a philanthropist. an entrepreneur. 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 10 a A business organization run solely by one individual who assumes all risks and earns all profits is a— A. B. C. D. corporation. venture capitalist. partnership. proprietorship. 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 10 a Wal-Mart is an example of a— A. sole proprietorship. B. corporation. C. corporate partnership. D. business partnership. 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 10 c In a savings and loan bank, who owns the institution? A. Creditors B. People who have shares C. The government D. A bank president 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 10 c In what way do financial institution encourage people to invest and save money? A. Giving financial advice B. Paying interest on deposits C. Giving car loans D. Offering competitive interest rates on loans 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 11 a Which government regulatory agency was developed during the Nixon administration? A. Federal Communication Commission B. Environmental Protection Agency C. Nuclear Regulatory Commission D. National Rifle Association 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 11 a If Virginia wanted to buy and sell goods with a Chinese company, which governmental regulatory agency would have to approve the venture? A. Environmental Protection Agency B. Interstate Commerce Commission C. Securities and Exchange Commission D. Federal Trade Commission 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 11 b The government collects taxes to— A. encourage investments. B. provide public goods and services. C. jumpstart a sluggish economy. D. provide salaries for politicians. 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 11 c When the government increases its spending without adequate resources, what is most likely to occur? A. B. C. D. Increase in taxes No change in taxes Decrease in taxes Debt reduction 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20

CE. 11 c The government get involved in taxing, spending, and borrowing to— A. provide bureaucratic positions for its citizens. B. influence economic activity. C. ensure all citizens are paying the same amount of taxes. D. to provide jobs. 1 2 3 4 5 6 7 8 9 10 21 22 23 24 25 26 27 28 29 30 11 12 13 14 15 16 17 18 19 20