Unit Checkpoint: Government & Economics
Checkpoint Instructions
This assessment evaluates your understanding of American government, economic systems, and civic participation. Answer all questions and complete the document analysis section.
- Section A: Multiple Choice (10 questions)
- Section B: Document Analysis (1 primary source)
- Section C: Short Response (1 question)
Section A: Multiple Choice
1. Which branch of government has the power to declare laws unconstitutional?
A) Executive B) Legislative C) Judicial D) Administrative
2. The Federal Reserve primarily controls:
A) Taxation rates B) Government spending C) Monetary policy D) International trade
3. Which economic indicator measures the total value of goods and services produced in a country?
A) CPI B) GDP C) Unemployment rate D) Trade balance
4. The principle of federalism refers to:
A) Separation of powers within the federal government
B) Division of power between national and state governments
C) The supremacy of federal courts
D) The amendment process
5. In a market economy, prices are primarily determined by:
A) Government regulation B) Supply and demand C) Labor unions D) Central planning
6. Which amendment guarantees the right to a speedy and public trial?
A) Fourth Amendment B) Fifth Amendment C) Sixth Amendment D) Eighth Amendment
7. Fiscal policy involves:
A) Adjusting interest rates B) Controlling the money supply C) Government spending and taxation D) Regulating banks
8. The elastic clause of the Constitution:
A) Limits congressional power
B) Gives Congress implied powers
C) Defines state powers
D) Establishes the amendment process
9. Inflation is best described as:
A) A decrease in unemployment
B) A general increase in prices over time
C) An increase in the money supply
D) Economic growth
10. Which of the following is an example of a check on executive power?
A) The President can veto legislation
B) Congress can override a veto
C) The President appoints judges
D) The President commands the military
Section B: Document Analysis
"The Congress shall have Power...To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States."
— U.S. Constitution, Article I, Section 8
11. What is this clause commonly called, and why has it been significant in expanding federal power?
Section C: Short Response
12. Explain how the Federal Reserve might respond to high inflation. Include at least two specific monetary policy tools and explain their intended effects on the economy. (5-7 sentences)
Answer Key
Click to reveal answers
- C) Judicial — Through judicial review (Marbury v. Madison)
- C) Monetary policy — The Fed controls money supply and interest rates
- B) GDP — Gross Domestic Product
- B) Division of power between national and state governments
- B) Supply and demand
- C) Sixth Amendment
- C) Government spending and taxation
- B) Gives Congress implied powers
- B) A general increase in prices over time
- B) Congress can override a veto — This is a check on executive power
- Sample response: This is the "Necessary and Proper Clause" or "Elastic Clause." It has allowed Congress to expand federal power by justifying legislation not explicitly listed in the Constitution, as long as it relates to an enumerated power. Key cases like McCulloch v. Maryland established broad interpretation of implied powers.
- Sample response: To combat high inflation, the Federal Reserve would likely raise the federal funds rate, making borrowing more expensive and reducing consumer spending. The Fed could also sell government securities through open market operations, which removes money from circulation. Additionally, the Fed might increase reserve requirements for banks, limiting their lending capacity. These tools aim to slow economic activity and reduce demand, thereby bringing down inflation.
Next Steps
- Review any questions you found challenging
- If you scored below 80%, revisit the relevant lessons
- Proceed to US History when ready