This page shows a list of standards in the American Government public release collection at MSDE. American Government
Released Questions in Standard "4.0 Economics"

Which of these best explains why the United States might place tariffs on imports?

In which economic system does the government control what products will be made, how many will be made, and how they will be made?

Which of these government actions is designed to lower inflation?

A federal regulatory commission recently charged a nationwide chain store with pressuring manufacturers to supply toys exclusively to its stores.

The federal regulatory commission's action is an example of

Which of these United States government actions is most directly related to the goal of economic equity?

Read the headline below.

Which of these does the headline suggest about unemployment rates?

Which of these best describes a mixed economy?

Which of these sets monetary policy in the United States?

Which of these regulatory agencies is responsible for inspecting airline equipment, maintenance, and safety procedures?

Read the scenario below.

Which economic concept applies in this situation?

Sugar substitutes are used in many diet soft drinks. They were tested for many years before being approved for use.

Which of these regulatory agencies is responsible for giving this approval?

Which of these actions would the Federal Reserve most likely take to help end a recession?

Which of the following government agencies would be most involved in developing proposals to preserve wetlands such as swamps, bogs, and marshes?

Which of these would be an opportunity cost to a government offering a tax break to businesses that invest in new machinery?

Which of these is a responsibility of the Federal Communications Commission (FCC)?

A traditional economy is an economic system

Suppose the President and leaders of Congress agreed to increase funding for the military and for education, while not funding protection of wetlands for migrating cranes.

Which of these does the above decision reveal about economic costs and benefits?

Which of the following is a responsibility of the Federal Communications Commission (FCC)?

Foreign aid is an important part of United States foreign policy.

• Describe types of foreign aid the United States provides to other countries.

• Should the United States provide foreign aid to other countries? Explain why or why not.

• Include details and examples to support your answer.

Write your answer on the lines in your Answer Book.

Which of these best reflects how the federal government manages the economy through fiscal policy?

Which of these is represented by the Gross Domestic Product (GDP)?

In order to make driving safer, some citizens want a law prohibiting drivers from using cell phones while driving.

• Explain the economic costs and benefits of this law if it is passed.

• Based on the costs and benefits, do you support or oppose the law? Explain why.

• Include details and examples to support your answer.

Write your answer on the lines in your Answer Book.

Due to large financial losses in the American automobile industry, the United States once set limits on the number of cars it imported. This response is most likely an example of government policy being shaped by

A company decides to install more machines and lay off workers. Which economic question is being directly addressed?

Which of these best explains why state government leaders must carefully evaluate costs and benefits when developing budgets?

Which of these consumer activities is most influenced by the Federal Reserve?

A local government allocates funds to expand an elementary school.

Which of these most likely describes an opportunity cost of this policy?

Which of these persons would the United States government count as unemployed?

Which of these is most often encouraged by the government in a command economy?

Read the information below.

• Describe advantages and disadvantages of OSHA regulations.

• Should the federal government be involved in regulating workers' safety? Why or why not?

• Include details and examples to support your response.

Write your answer on the lines in your Answer Book.

Which of these is most likely a reason the federal government requires permits for utility companies to release pollutants into the air?

Which of these is a responsibility of the Federal Trade Commission (FTC)?

Which of these would most likely result if Congress increased the minimum wage?

What is the opportunity cost for state governments that spend state money during natural disasters?

Which of these is a function of the Federal Communications Commission (FCC)?

Which of these is a responsibility of the Food and Drug Administration (FDA)?

Which of these actions by the federal government would most likely reduce inflation?

While working with the Environmental Protection Agency (EPA), some counties in Maryland have begun a program to encourage residents to recycle electronic equipment such as computers, televisions, and telephones.

Which of these is most likely a purpose of this program?

Which of these statements best describes a responsibility of the Federal Aviation Administration (FAA)?

Which of these would most likely take place in a command economy?

The United States has a mixed economy and is able to regulate many business activities.

• What are the benefits of government control over business activities?

• Should the United States government have more control or less control over business activities? Explain your answer.

• Use details and examples to support your answer.

Write your answer on the lines in your Answer Book.

Read the news article excerpt below.

The action described in the article above is intended to

Study the graph below.

The information in the graph is mostly about

The government of China tells factory managers to increase their use of computers in manufacturing.

What economic question is most affected by the government's actions?

Which of these is most closely associated with an economic recession?

The Consumer Product Safety Commission (CPSC), a federal government agency, regulates consumer products by developing and enforcing safety standards, and educating consumers.

Based on this information, which of these would most likely be a responsibility of the CPSC?

The Food and Drug Administration (FDA) and the Federal Trade Commission (FTC) are similar in that they both

The federal government passed a law reducing the amount of lumber that can be cut from national forests.

Which of these could be a result of this law?

Which of these is a characteristic of a traditional economy?

Which of these economic indicators would be most useful for determining the rate of inflation?

Which of these is a function of the Federal Aviation Administration (FAA)?

If tax revenues decrease, what would be the effect on the state of Maryland?

Which of these is usually true in nations with a market economy?

After purchasing a new car, the owner had the steering wheel repaired at least four times within one year. Under Maryland law, the person is entitled to a new car or a refund.

The purpose of this law is to protect the

Read the headline below.

Which of these best explains the reason for the Federal Reserve's action?

Which of these is an economic benefit of lower tax rates?

Which of these is a characteristic of a market economy?

A local government has a limited amount of money to spend. It decides to spend the money to support local businesses instead of to remove trash from unused buildings and vacant lots.

Which of these is the opportunity cost of this decision?

Read the excerpt below and use it to answer the BRIEF CONSTRUCTED RESPONSE that follows.

• Describe benefits of the FCC regulations outlined above.

• Do you consider the regulations outlined above to be a form of censorship? Explain why or why not.

• Include details and examples to support your response.

Write your answer on the lines in your Answer Book.

Which of these best describes the United States' economic system?

Which of these is an example of government fiscal policy?

Which of these is a role of regulatory agencies such as the Federal Aviation Administration (FAA) and Environmental Protection Agency (EPA)?

The Federal Trade Commission (FTC) requires that all products labeled "Made in the USA" be "all or virtually all" made in the United States.

Which of these is the main reason for the above requirement?

Which of these is a responsibility of the Federal Reserve System?

Which of these is a characteristic of an economic downturn?

Which of these government regulatory agencies enforces legislation to limit or reduce water pollution?

Read the information below and use it to answer the BRIEF CONSTRUCTED RESPONSE that follows.

• Describe the opportunity costs and the benefits of the purchase.

• Is it appropriate for the state government to buy undeveloped land? Explain why or why not.

• Include details and examples to support your answer.

Write your answer on the lines in your Answer Book.

Which of these government agencies is directly responsible for monitoring business competition?

Why do some nations adopt command economies during wars?

In which economic system does the government have the most control over a country's economy?

Which of these would involve the Food and Drug Administration (FDA)?

Study the graph below.

Which of these best characterizes the condition of the United States' economy between 1975 and 1978?

Which of these is most often a feature of countries with traditional economies?

If government statistics show rising unemployment and a falling Consumer Price Index, which of these actions should the Federal Reserve take to help the economy?

In the 1930s, the federal government formed the Federal Deposit Insurance Corporation (FDIC), an insurance system to protect bank deposits.

Why would the government create this corporation?

Some gas station operators were told by a regulatory agency that their underground gasoline tanks had to be removed and new ones installed. The order was given because the tanks were old and leaking fuel into the ground.

Which of these regulatory agencies has the authority to issue the replacement order?

In a market economy, who decides how resources are used and distributed?

The Consumer Product Safety Commission is a federal agency that enforces safety standards for consumer products. The agency was most likely created because

The Consumer Price Index (CPI) reports on price changes for over 90,000 items.

Which of these is most likely the reason the federal government uses the CPI?

Which of these is a function of the Federal Reserve?

Read the headline below.

What is an economic cost most directly associated with the headline?

Which of these does the Federal Aviation Administration (FAA) regulate?

Which of these is a goal of the United States government in stabilizing the economy?

The basic economic questions in the United States are mainly answered by

Which of these government actions would most directly promote economic security?

The governor of Maryland chose to cut spending on road construction in order to increase spending for school construction.

Which economic principle is best demonstrated by this decision?

Read the news headline below.

Based on the headline, which of these is a purpose of this action?

Study the chart below.

Based on the chart, which of these would be a result of open market operations by the Federal Reserve System?

Which of these government agencies is directly responsible for monitoring business competition?

Which of these is the main economic cost of the federal government removing taxes on imported goods?

Why do some nations adopt command economies during wars?

In which economic system does the government have the most control over a country's economy?

Study the graph below.

Which of these best characterizes the condition of the United States’ economy between 1975 and 1978?

Read the information and use it to answer the constructed-response item.

• Describe the opportunity costs and the benefits of the purchase.

• Is it appropriate for the state government to buy undeveloped land? Explain why or why not.

• Include details and examples to support your answer.

Which of these would involve the Food and Drug Administration (FDA)?

Read the headline.

What action could Congress take to continue the result described in the headline?

Select the three characteristics of a command economy.

Read the excerpt.

Based on the excerpt, how does the Fair Packaging and Labeling Act increase market competition?

Read the excerpt.

Which of these describes why this act was passed?

Read the information.

Which socioeconomic goal is most directly addressed by the law described in the information?

Read the information below and use it to answer the constructed-response item.

• Describe the benefits and opportunity cost of the decision.

• What is the best way for the state government to determine which proposal to fund? Explain your answer.

• Include details and examples to support your answer.

Study the cartoon. Use the cartoon to answer the question.

In the cartoon, what is the most likely effect of the woman's actions on the business cycle?

Study the cartoon. Use the cartoon to answer the question.

What is a likely cost of the family's purchases shown in the cartoon?

Read the headline.

This headline describes an economy that is showing

Read the information and use it to answer the constructed-response question.

• Describe the role of the Federal Reserve.

• Explain how the Federal Reserve could use monetary policy to address the economic changes described in this information.

• Include details and specific examples to support your answer.

Read the excerpt.

The situation described in the news article illustrates a possible conflict between finding alternative sources of energy and

Select the two actions a government regulatory agency would most likely take in response to a market failure.

Select the three factors that are directly included in the measure of Gross Domestic Product (GDP).