1. Unit 7 Jeopardy

2. Which of these was the main purpose of the North American Free Trade Agreement (NAFTA) of 1993? a. to weaken Mexico's economy b. to attract United States workers to Mexico c. to encourage Mexican companies to move to Canada d. to open markets between the United States and Mexico

3. Which of these best explains why local governments create zoning laws? a. to require builders to pursue creative designs b. to increase the number of jobs in a community c. to encourage businesses and citizens to recycle more goods d. to control the use of buildings and land within a community

4. Which of these is an economic benefit of lower tax rates? a. better public services b. more consumer spending c. expanded government programs d. larger number of government employees

5. Read the excerpt below. Which of these was most likely the United States policy toward Cuba at the time the article was written? A. boycotting Cuban exports B. funding the Cuban government C. maintaining a military alliance with Cuba D. encouraging other nations to trade with Cuba

6. Which of these is most likely a goal of the policy toward Cuba? A. to increase tourism to Cuba B. to eliminate migration from Cuba C. to weaken the economy of Cuba D. to obtain military intelligence about Cuba

7. Which of these is a characteristic of a market economy? A. limited business rights B. competition between businesses C. government control and ownership of property D. nationwide pricing rules for goods and services

8. 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? A. tax revenue B. jobs for local residents C. a clean environment D. profits for business owners

9. Read the news article excerpt below. Which of these statements is supported by the excerpt? A. Wildlife preservation is mainly a responsibility of private organizations. B. The federal and state governments share responsibilities for preserving wildlife. C. The state government relies mainly on private developers to enforce wildlife regulations. D. Wildlife regulations issued by the state government take priority over federal regulations.

10. Which of these best describes the United States’ economic system? F mixed G market H command J traditional

11. Study the political cartoon below. Copyright © 2002 by Eric Smith. Reprinted by permission of Eric Smith. EPA: Environmental Protection Agency To which problem in Maryland does the political cartoon most directly apply? F determining traffic patterns in Annapolis G informing Baltimore residents of crime rates H improving the water quality in the Chesapeake Bay J limiting the growing population around Washington, D.C.

12. Which of these is an example of government fiscal policy? A creating budgets B adjusting the discount rate C conducting open-market operations D changing the reserve requirement

13. The United Nations was organized to A decrease trade barriers B prevent further world wars C establish a military alliance D create a single world currency

14. Read the news article excerpt below. Which of these government responsibilities is most closely related to the activity described in the excerpt? A. protecting public safety B. promoting economic growth C. protecting individual liberties D. promoting regional cooperation

15. Which of these is a role of regulatory agencies such as the Federal Aviation Administration (FAA) and Environmental Protection Agency (EPA)? A. to set up worker training programs B. to establish the prime interest rate C. to protect the safety of citizens D. to make rules about campaigns for public office

16. Read the news article excerpt below. The government action in the news article is an example of A. state government cooperation in regional issues B. federal intervention in states’ rights issues C. the government’s role in a free market economy D. the improved condition of polluted waterways

17. 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? A. to increase the advertising industry's profits B. to encourage more foreign imports C. to enforce truth-in-advertising standards D. to lower the cost of manufactured goods

18. Which of these is a responsibility of the Federal Reserve System? collecting taxes lending money to individuals controlling the money supply approving government budgets

19. Which of these is a characteristic of an economic downturn? increased employment levels increased consumer spending decreased government regulation decreased production of goods and services

20. Which of these environmental issues would be the least likely topic for joint action by the United States and Canada? air pollution wildlife migration water quality residential development

21. The federal government allows individuals to take income tax deductions for contributions they make to charities. This practice results in a loss of tax revenue for the government. Which of these best explains why the government allows this type of tax deduction? to encourage charities to hire more workers to encourage people to pay their taxes on time to increase the benefits provided by charities to increase the amount of government regulations

22. Read the news article excerpt. Based on the article, which of these is a function of the Federal Emergency Management Agency (FEMA)? operating public hospitals constructing state highways ensuring the welfare of citizens developing technology to predict weather

23. Which of these government regulatory agencies enforces legislation to limit or reduce water pollution? the Federal Trade Commission (FTC) the Food and Drug Administration (FDA) the Environmental Protection Agency (EPA) the Federal Aviation Administration (FAA)

24. Which of these actions best describes regional cooperation? A state park expands its tree planting program. Maryland increases pay for state employees. The state capitol and other public buildings are opened to visitors. State governors meet to plan interstate highways

25. The United States Department of Agriculture (USDA) provides help to landowners who want to restore wetlands located on their property. What is most likely the purpose of this program? to protect the environment to purchase private property to encourage development to increase tax revenues

26. 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 consumer government automobile salesperson automobile manufacturer

27. In the 1980s, the United States, some European countries, and the United Nations banned the trade of certain goods and services to South Africa. The policy was in response to South African laws which enforced racial segregation. Which of these best describes this action toward South Africa? the use of diplomacy to gain military strength the use of free trade to build military alliances the use of humanitarian aid to win political support the use of economic sanctions to bring about social change

28. Which of these does the International Red Cross provide in time of war? health care to prisoners of war trained personnel to assist in combat military protection to nations surrounding war zones ambassadors to help warring nations reach peaceful agreements

29. Which of these is the main goal of both the World Bank and the International Monetary Fund? to improve the economies of member nations to promote democratic reforms in member nations to increase reliance on agriculture in member nations to support the educational institutions of member nations

30. Why did the United States government most likely sign the North American Free Trade Agreement (NAFTA)? to expand the economy to establish a military alliance to provide direct funding to foreign countries to improve the transportation system between member countries

31. The Maryland State Highway Administration is considering a plan to widen three miles of a major route from two lanes to six lanes. Which of these most likely caused this planned action? a decrease in trucking an increase in population an increase in unemployment rates a decrease in construction work

32. If tax revenues decrease, what would be the effect on the state of Maryland? Maryland would reduce tax rates. Retail businesses would lower prices. Maryland would reduce funding for some programs. The federal government would replace lost income from taxes.

33. The Clean Alternative program was developed by the Maryland state government to encourage businesses, such as taxicab companies, to switch to cars that use new technologies that are less harmful to the environment. Which of these government actions would support the goal of this program? reducing the costs of gasoline improving the condition of state highways building more parking areas in crowded communities providing tax credits for the purchase of low-pollution cars

34. Maryland lost approximately 10,000 acres of forest land each year between 1985 and 1990. Which of these government actions would have done the most to reduce the loss? eliminating zoning laws limiting the development of real estate reducing funds for environmental studies decreasing the number of wildlife preservation areas

35. The Susquehanna River flows through New York, Pennsylvania, and Maryland. Which of these is the most effective way to resolve disputes over the use and protection of the river? turn over control of the river to one state hire a private company to manage actions related to the river encourage each state to develop and enforce its own policies create a regional organization to develop policies regarding the river

36. The states of Maryland, Virginia, and Delaware joined together during the 1980s and 1990s in an effort to reduce pollution in the Chesapeake Bay. This is an example of a government policy being shaped by regional interests national interests community interests international interests

37. Which of these is a characteristic of a traditional economy? People rely heavily on hunting and farming. Large corporations compete for business. The government generally owns all means of production. Technological advancements encourage growth.

38. Which of these is usually true in nations with a market economy? Businesses that are inefficient risk going out of business. Most farms are owned and operated by the government. Workers are restricted by the government from changing jobs. Consumers have little choice in the types of goods they may buy.

39. Which of these is a way the government promotes economic equity and fairness? redistributing income increasing interest rates monitoring tax rates on exports decreasing the money supply

40. 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? increased production of wood products higher prices for consumers of wood products decreased profits for manufacturers of non- wood products decreased taxes for the non-wood manufacturing industry

41. Which of these is an economic cost of an airport being built near a small town? lower tax revenue fewer business opportunities more unemployment increased demand on public services

42. 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? to provide money to help businesses improve their products to ensure that people are paying a fair price for a product to help businesses identify products that will meet their needs to order a recall of a product that may cause harm to people

43. The Food and Drug Administration (FDA) and the Federal Trade Commission (FTC) are similar in that they both regulate labor enforce tax laws protect consumers oversee transportation

44. Which of these is a function of the Federal Aviation Administration (FAA)? to issue airline tickets to finance new airlines to hire airline pilots to regulate airline traffic

45. Which of these economic indicators would be most useful for determining the rate of inflation? the prime interest rate the unemployment rate Consumer Price Index (CPI) Gross Domestic Product (GDP)

46. Read the information below and use it to answer the BRIEF CONSTRUCTED RESPONSE that follows. The Baltimore Metropolitan Council represents the governments of five neighboring counties. The Council oversees air and water quality programs and helps operate a regional rideshare program. Describe the advantages and disadvantages of this type of regional cooperation. Do the advantages outweigh the disadvantages? Explain why or why not. Include details and examples to support your answer.

47. Read the excerpt below and use it to answer the BRIEF CONSTRUCTED RESPONSE that follows. Children's Television Programming “[An educational program] must be a regularly scheduled, weekly program of at least 30 minutes, and aired between 7:00 a.m. and 10:00 p.m. The program must also be identified as educational and informational for children when it is aired…. Broadcasters will … air three hours per week of [educational] programming.” —from an order issued by the Federal Communications Commission (FCC) in 1996 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.

48. The World Health Organization, of which the United States is a member, is an agency of the United Nations formed to help people achieve “the highest possible levels of health.” It has contributed to the reduction of some diseases. Its services include training medical personnel and sponsoring medical research. Explain the advantages and disadvantages to the United States of being a member of the World Health Organization. Should the United States be concerned about health care in other countries? Explain why or why not. Include details and examples to support your answer.