Economic, Fiscal & Trade Policy in the U.S. Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following are the two phases and the two turning points of the business cycle?

Question 2 2. All of the following are ways that the U.S. government promotes the economic interests of businesses, EXCEPT:

Question 3 3. Sunshine Solar receives a $2,000 reduction on its federal taxes for each solar-energy installation it performs. This is an example of a _____.

Question 4 4. All of the following laws were meant to protect workers except

Question 5 5. Which of the following is an objective of the Trade Adjustment Assistance Act?

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Question 6 6. According to this chart, what was the unemployment rate during the peak of the business cycle?

Question 7 7. For three quarters in a row, economic growth increased by 3%, 5% and 7%. As it was close to the election, the government did not try to stabilize the growth. In the last quarter of the year, the economy drastically fell by 5%. Which of the following best describes such an occurrence?

Question 8 8. Which of the following is NOT true about how the government protects the U.S. economy?

Question 9 9. All of the following are ways that the Federal Reserve can affect the money supply except _____.

Question 10 10. You are an adviser to the Federal Reserve. Select which of the following is a goal that monetary policy should NOT strive towards nor have influence over?

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Question 11 11. In which of the following scenarios would it be a good idea for the government to implement a deflationary fiscal policy?

Question 12 12. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?

Question 13 13. Which of the following BEST defines the purpose of U.S. trade policy?

Question 14 14. What happens to real GDP, prices and unemployment at the peak of a business cycle?

Question 15 15. What happens to economic output as measured by GDP during a recession?

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Question 16 16. Which act created a trade bill that established the African Growth and Opportunity Act (AGOA)?

Question 17 17. The rate banks pay to borrow money from the Fed is called the _____ rate.

Question 18 18. What branch of government includes the President, the Departments of Treasury, State, and Commerce, and regulatory agencies?

Question 19 19. _____ reduce the amount of taxable income a business has to report.

Question 20 20. The government's restriction and control over business practices is called _____.

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Question 21 21. How would the Federal Reserve implement an expansionary monetary policy?

Question 22 22. What does the ITC and ITA accomplish?

Question 23 23. The method of affecting the money supply that is used the least by the Fed is

Question 24 24. Overregulation is usually a result of the government wishing to promote _____.

Question 25 25. Which of the following is an example of an efficiency goal?

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Question 26 26. In general, which of the following is NOT correct concerning how politics and regulation intersect?

Question 27 27. If the government wants to pull the country out of a period of heavy recession they should do all of the following EXCEPT:

Question 28 28. The Federal Reserve controls the growth rate of the money supply through _____.

Question 29 29. What is a government MOST likely to do to protect the interests of agricultural businesses?

Question 30 30. Which of the following is an example of an equity goal?

Economic, Fiscal & Trade Policy in the U.S. Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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