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Which principle of American democracy asserts that the authority of the government is created and sustained by the consent of its people?

Select one option

A) Federalism

B) Checks and Balances

C) Popular Sovereignty

D) Separation of Powers

The concept of 'limited government' means that:

Select one option

A) The government has unlimited power over its citizens.

B) Government power is restricted by laws and a constitution.

C) Only a limited number of people can hold government office.

D) Government spending is always kept to a minimum.

Which of the following is an example of federalism in the United States?

Select one option

A) The President appointing cabinet members.

B) The Supreme Court ruling on the constitutionality of a law.

C) Both state and federal governments have the power to levy taxes.

D) Congress declaring war.

The U.S. Constitution establishes a system of 'separation of powers' to:

Select one option

A) Ensure that all states have equal representation.

B) Divide governmental authority among three distinct branches.

C) Allow political parties to have equal influence.

D) Separate religious institutions from governmental affairs.

The First Amendment to the U.S. Constitution protects which of the following rights?

Select one option

A) The right to bear arms

B) Protection against unreasonable searches and seizures

C) Freedom of speech and religion

D) The right to a speedy and public trial

Which of the following is a power of the Executive Branch of the U.S. government?

Select one option

A) Declaring laws unconstitutional

B) Ratifying treaties

C) Vetoing legislation

D) Impeaching federal judges

The primary role of the Legislative Branch (Congress) is to:

Select one option

A) Enforce laws

B) Interpret laws

C) Make laws

D) Appoint ambassadors

The Judicial Branch's power to determine whether a law or government action violates the Constitution is known as:

Select one option

A) Executive Privilege

B) Judicial Review

C) Legislative Oversight

D) Implied Powers

A system of checks and balances in the U.S. government ensures that:

Select one option

A) The federal government has more power than state governments.

B) Each branch of government has some power over the others to prevent abuse.

C) All laws are passed with unanimous consent.

D) Political parties are equally represented in Congress.

10.

What is the primary function of political parties in a democracy?

Select one option

A) To enforce laws

B) To interpret the Constitution

C) To nominate candidates, win elections, and influence policy

D) To conduct foreign policy negotiations

11.

The Electoral College is used in the U.S. for:

Select one option

A) Electing members of Congress

B) Choosing Supreme Court justices

C) Electing the President and Vice President

D) Appointing cabinet secretaries

12.

Civil liberties are best defined as:

Select one option

A) Rights guaranteed to all citizens to ensure equality.

B) Protections from improper governmental action.

C) The right to vote in all elections.

D) Freedoms granted only to those who serve in public office.

13.

Which of the following is an example of civic participation?

Select one option

A) Watching a political debate on television.

B) Reading a newspaper.

C) Volunteering for a local community clean-up event.

D) Complaining about government policy to friends.

14.

The fundamental economic problem of scarcity arises because:

Select one option

A) There is not enough money in circulation.

B) Human wants for goods, services, and resources exceed what is available.

C) Governments impose too many regulations on businesses.

D) International trade is restricted by tariffs.

15.

Opportunity cost is best described as:

Select one option

A) The total cost of producing a good or service.

B) The value of the next best alternative that must be forgone when making a choice.

C) The price paid for raw materials.

D) The profit gained from an investment.

16.

According to the law of demand, as the price of a good increases, the quantity demanded will:

Select one option

A) Increase

B) Decrease

C) Remain unchanged

D) Fluctuate unpredictably

17.

A point inside the Production Possibilities Frontier (PPF) indicates:

Select one option

A) Efficient use of resources

B) Economic growth

C) Underutilization of resources

D) An unattainable level of production

18.

In a pure market economy, the primary decisions about what to produce, how to produce, and for whom to produce are made by:

Select one option

A) The government

B) International organizations

C) Individual consumers and producers

D) A central planning committee

19.

Which of the following describes a key characteristic of a command economy?

Select one option

A) Private ownership of the means of production

B) Decisions are driven by supply and demand in free markets

C) Centralized planning by the government dictates economic activity

D) Minimal government intervention in the economy

20.

Which form of business organization offers its owners limited liability?

Select one option

A) Sole Proprietorship

B) Partnership

C) Corporation

D) Franchise

21.

Gross Domestic Product (GDP) is a measure of:

Select one option

A) The total value of a country's exports.

B) The total income earned by a nation's citizens.

C) The total value of all final goods and services produced within a country's borders in a specific time period.

D) The amount of government debt.

22.

Inflation is generally defined as:

Select one option

A) A decrease in the overall price level of goods and services.

B) A sustained increase in the overall price level of goods and services.

C) An increase in the unemployment rate.

D) A decrease in the national debt.

23.

Which of the following is an example of a fiscal policy tool?

Select one option

A) Changing the federal funds rate

B) Open market operations

C) Government spending on infrastructure projects

D) Adjusting the reserve requirement for banks

24.

Monetary policy in the United States is primarily conducted by which institution?

Select one option

A) The U.S. Treasury Department

B) The Federal Reserve System

C) The World Bank

D) The International Monetary Fund

25.

A tariff is a tax imposed on:

Select one option

A) Domestic goods sold within a country.

B) Services provided by government agencies.

C) Imported goods and services.

D) Income earned by corporations.

The Great Depression and Government Intervention

Document 1: Excerpt from President Franklin D. Roosevelt's First Inaugural Address (1933) "The only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life, a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am prepared under my constitutional duty to recommend the measures that a stricken Nation in the midst of a stricken world may require. These measures, or such other measures as the Congress may speedily devise, I shall seek, within my constitutional authority, to bring to speedy adoption."

Document 2: U.S. Unemployment Rate, 1929-1941

Year	Unemployment Rate (%)
1929	3.2
1930	8.7
1931	15.9
1932	23.6
1933	24.9
1934	21.7
1935	20.1
1936	16.9
1937	14.2
1938	19.0
1939	17.2
1940	14.6
1941	9.9
Source: U.S. Department of Labor

Document 3: Political Cartoon: "The New Deal Architect" (1930s)

NEW DEAL

FDR

Hammer of Legislation

DEPRESSION

RELIEF RECOVERY REFORM Caption: President Roosevelt (represented as the architect) attempting to build the "New Deal" house on a crumbling "Depression" foundation, using the "Hammer of Legislation." The pillars are labeled "Relief," "Recovery," and "Reform."

Document 4: Excerpt from F.A. Hayek, The Road to Serfdom (1944) "The planning of economic activity necessarily involves the creation of a vast bureaucratic machine and the vesting of arbitrary powers in individual officials. The more complex the system grows, the more difficult it becomes to control its parts, and the greater the temptation to simplify the task of direction by extending the scope of arbitrary command. Central planning, even if pursued by men of good intentions, must ultimately lead to coercion and the suppression of individual liberties, because it requires the planner to decide not only what to produce, but also how to distribute it, thus interfering with individuals' free choices."

26.

Using the provided documents and your knowledge of U.S. Government and Economics, analyze the extent to which the Great Depression challenged traditional American economic and political ideologies, and evaluate the effectiveness of government responses in addressing the crisis.

In your essay, you should:

Analyze how the documents illustrate the economic and political context of the Great Depression and the proposed solutions.
Incorporate information from at least three of the provided documents.
Incorporate relevant outside knowledge of Government and Economics.
Construct a well-organized argumentative essay that addresses all parts of the prompt.

27.

Option 1 (Government Focus): Analyze the effectiveness of the checks and balances system in preventing abuse of power within the U.S. federal government. In your response, provide specific examples of how each branch exercises its power to limit the others.

28.

Option 2 (Economics Focus): Discuss the major goals of macroeconomic policy and evaluate the effectiveness of both fiscal and monetary policy tools in achieving these goals.