Exam 15: Economic Policy

National defense,which provides security against foreign invasion to all Americans living within the country's borders,is an example of a ____________________.

Which refers to the declining purchasing power of a unit of currency?

What is an externality? What are two examples of externalities? Why is public policy making often concerned with externalities? How might policy makers encourage activities with positive externalities and discourage activities with negative externalities?

Over the last century,the federal government has become increasingly active in every area of economic regulation and activity EXCEPT ____________________.

By law,the ____________________ is required to submit a budget to Congress by the first Monday in February.

By requiring banks to keep more money in their vaults,the Federal Reserve Board can effectively pull money out of the economy,thereby slowing ____________________.Conversely,by loosening reserve requirements,the Federal Reserve Board can pump more money into the economy,which usually leads to ____________________ interest rates and ___________ access to loans.

Which refers to the total amount of money owed to lenders by the United States government?

Which of the following refers to an economic philosophy advocating that the government not intervene in the economy and leave market forces to influence the economic behavior of individuals and firms?

The federal cigarette tax is an example of a ______________.

Since World War II,the U.S.government has spent ____________________ the typical western European country on social welfare policies,nationalized health care,and public education,both on a per capita basis and as a percentage of gross domestic product.

The ____________________ is/are like a blueprint for the entire structure,while ____________ is/are like detailed instructions on how to accomplish each item that makes up the overall structure.

The debt the U.S.national government owes to borrowers is ____________________ in comparison with other countries' debt.

Confidence in the dollar stems from the fact that the United States has never ____________________ on its bonds or experienced a serious threat to its ____________________ since the mid-nineteenth century.

In general,a/an ____________________ is most threatening to public goods.

Compared to other modern democratic countries,government intervention in the United States' economy is ____________________.

The Federal Reserve's policy of buying publicly held government debt with newly ?0Òprinted?1Ó money in order to increase the amount of U.S.currency in circulation is an example of a ______________.

Which is an economic philosophy that advocates public ownership and control of capital through government?

Subnational (state and local)governments account for approximately 40 percent of all government spending in the United States.This is a/an ____________________ proportion than in most other advanced industrialized democracies.

In the absence of environmental laws,many people will act in their own self-interest;they will overuse natural resources and abuse the environment.If many individuals and businesses act this way,we will have a degraded environment and depleted resources.This poses a ____________________ for people who wish to enjoy the goods provided by nature.

By law,the Federal Reserve Board is supposed to be ____________________ political pressure,meaning that its decisions ____________________.