This page shows a list of units in the American Government public release collection at MSDE. American Government
Released Questions in Unit "Economic Policy"
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Which of these best explains why the United States might place tariffs on imports?
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In which economic system does the government control what products will be made, how many will be made, and how they will be made?
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Which of these government actions is designed to lower inflation?
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Which of these United States government actions is most directly related to the goal of economic equity?
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Read the headline below.
Which of these does the headline suggest about unemployment rates?
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Which of these best describes a mixed economy?
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Which of these sets monetary policy in the United States?
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Read the scenario below.
A local board of education is preparing the budget for the next fiscal year. The board decides to pay for repairs to school buildings instead of buying new computers.
Which economic concept applies in this situation?
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Which of these actions would the Federal Reserve most likely take to help end a recession?
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Which of these would be an opportunity cost to a government offering a tax break to businesses that invest in new machinery?
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A traditional economy is an economic system
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Pre-recorded audio
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?
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Which of these best reflects how the federal government manages the economy through fiscal policy?
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Which of these is represented by the Gross Domestic Product (GDP)?
This is a test question that allows you to enter extended text in your response.
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.
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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
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A company decides to install more machines and lay off workers. Which economic question is being directly addressed?
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Which of these best explains why state government leaders must carefully evaluate costs and benefits when developing budgets?
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Which of these consumer activities is most influenced by the Federal Reserve?
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A local government allocates funds to expand an elementary school.
Which of these most likely describes an opportunity cost of this policy?
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Which of these persons would the United States government count as unemployed?
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Which of these is most often encouraged by the government in a command economy?
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Which of these would most likely result if Congress increased the minimum wage?
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What is the opportunity cost for state governments that spend state money during natural disasters?
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Which of these actions by the federal government would most likely reduce inflation?
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Which of these would most likely take place in a command economy?
This is a test question that allows you to enter extended text in your response.
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.
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Study the graph below.
The information in the graph is mostly about
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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?
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Which of these is most closely associated with an economic recession?
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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?
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Which of these is a characteristic of a traditional economy?
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Which of these economic indicators would be most useful for determining the rate of inflation?
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If tax revenues decrease, what would be the effect on the state of Maryland?
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Which of these is usually true in nations with a market economy?
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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
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Read the headline below.
Which of these best explains the reason for the Federal Reserve's action?
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Which of these is an economic benefit of lower tax rates?
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Which of these is a characteristic of a market economy?
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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?
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Which of these best describes the United States' economic system?
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Which of these is an example of government fiscal policy?
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Which of these is a responsibility of the Federal Reserve System?
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Which of these is a characteristic of an economic downturn?
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Read the information below and use it to answer the BRIEF CONSTRUCTED RESPONSE that follows.
In 2002, the Maryland General Assembly voted to purchase undeveloped land on the Chesapeake Bay before a construction company could purchase it. The state plans to use the land as a park for recreational activities.
- 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.
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Why do some nations adopt command economies during wars?
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In which economic system does the government have the most control over a country's economy?
This is a multiple choice question that allows you to select only one option.
Study the graph below.
Which of these best characterizes the condition of the United States' economy between 1975 and 1978?
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Which of these is most often a feature of countries with traditional economies?
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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?
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In a market economy, who decides how resources are used and distributed?
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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?
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Which of these is a function of the Federal Reserve?
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Read the headline below.
What is an economic cost most directly associated with the headline?
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Which of these is a goal of the United States government in stabilizing the economy?
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The basic economic questions in the United States are mainly answered by
| A | Key: |
| B | Makes laws |
| C | Not national in scope |
| D | No power to answer economic questions |
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Which of these government actions would most directly promote economic security?
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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?
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Study the chart below.
| INSTRUMENTS OF THE FEDERAL RESERVE SYSTEM | |
| Instrument | Function |
|---|---|
| Interest Rate | Interest rate charged to banks by other banks or the Federal Reserve |
| Reserve Requirements | Requirements on the amount of funds banks must hold in reserve against deposits |
| Open Market Operations | The buying and selling of United States government securities in the open market |
Based on the chart, which of these would be a result of open market operations by the Federal Reserve System?
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Which of these is the main economic cost of the federal government removing taxes on imported goods?
This is a multiple choice question that allows you to select only one option.
Why do some nations adopt command economies during wars?
This is a multiple choice question that allows you to select only one option.
In which economic system does the government have the most control over a country's economy?
This is a multiple choice question that allows you to select only one option.
Study the graph below.
Which of these best characterizes the condition of the United States’ economy between 1975 and 1978?
This is a multiple choice question that allows you to select only one option.
Read the headline.
What action could Congress take to continue the result described in the headline?
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Select the three characteristics of a command economy.
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Read the information.
To help fight poverty, Maryland has passed a law raising the minimum wage for employees of private businesses doing contract work for the state.
Which socioeconomic goal is most directly addressed by the law described in the information?
This is a test question that allows you to enter extended text in your response.
Read the information below and use it to answer the constructed-response item.
The state legislature has to decide whether to fund a proposal to repair roads or a proposal that would increase funding for new school construction.
- 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.
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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?
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Study the cartoon. Use the cartoon to answer the question.
What is a likely cost of the family's purchases shown in the cartoon?
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Read the headline.
This headline describes an economy that is showing
This is a test question that allows you to enter extended text in your response.
Read the information and use it to answer the constructed-response question.
In December 2007 the U.S. unemployment rate was 5 percent. By June 2009 the U.S. unemployment rate was 9.5 percent.
- 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.
This is a multiple choice question that allows you to select several options.
Select the three factors that are directly included in the measure of Gross Domestic Product (GDP).