Question 1

Farm subsidies have traditionally had strong support in Congress,particularly from

Accepted Answer

A) representatives whose districts are rural. 
B) rural-state senators and representatives. 
C) senators whose states are rural. 
D) the Speaker of the House and Senate president pro tempore. 
E) Democratic senators and representatives. 
A) representatives whose districts are rural. 
B) rural-state senators and representatives. 
C) senators whose states are rural. 
D) the Speaker of the House and Senate president pro tempore. 
E) Democratic senators and representatives. B

Question 2

If the economic problem is low productivity and high unemployment,the fiscal policy action on the demand side would be to

Accepted Answer

A) increase taxes. 
B) cut business taxes. 
C) increase spending. 
D) decrease spending. 
E) None of these answers is correct. 
A) increase taxes. 
B) cut business taxes. 
C) increase spending. 
D) decrease spending. 
E) None of these answers is correct. C

Question 3

The Federal Reserve plays a large part in establishing ________ policy.

Accepted Answer

A) monetary 
B) military 
C) fiscal 
D) budgetary 
E) security 
A) monetary 
B) military 
C) fiscal 
D) budgetary 
E) security A

Question 4

Which is true regarding the nation's environmental policy?

Accepted Answer

A) The first major steps by the national government to clean up the environment began in the early 1900s. 
B) A majority of the public is sympathetic to environmentalism. 
C) The modern environmental movement gained impetus with the publication of Armageddon in 1949. 
D) In the 1960s,the government began a policy of land conservation through the creation of national parks. 
E) A majority of the public is not sympathetic to environmentalism. 
A) The first major steps by the national government to clean up the environment began in the early 1900s. 
B) A majority of the public is sympathetic to environmentalism. 
C) The modern environmental movement gained impetus with the publication of Armageddon in 1949. 
D) In the 1960s,the government began a policy of land conservation through the creation of national parks. 
E) A majority of the public is not sympathetic to environmentalism.

Question 5

Which of the following statements is true?

Accepted Answer

A) The national debt was eliminated in 1998. 
B) The chair of the Fed creates the president's budget on an annual basis. 
C) Keynes advocated government spending to counteract an economic downturn. 
D) The highest budget deficit in U.S.history was $59 billion. 
E) The Congressional Budget Office creates the president's budget on an annual basis. 
A) The national debt was eliminated in 1998. 
B) The chair of the Fed creates the president's budget on an annual basis. 
C) Keynes advocated government spending to counteract an economic downturn. 
D) The highest budget deficit in U.S.history was $59 billion. 
E) The Congressional Budget Office creates the president's budget on an annual basis.

Question 6

Members of the Federal Reserve Board

Accepted Answer

A) serve for variable terms and are exposed to high levels of political pressure. 
B) have no power to refuse congressional requests for information. 
C) are appointed by the president and can be removed by the Senate. 
D) are appointed by Congress and can be removed by Congress. 
E) are appointed by the president and are not subject to removal. 
A) serve for variable terms and are exposed to high levels of political pressure. 
B) have no power to refuse congressional requests for information. 
C) are appointed by the president and can be removed by the Senate. 
D) are appointed by Congress and can be removed by Congress. 
E) are appointed by the president and are not subject to removal.

Question 7

Describe Adam Smith's laissez-faire model of economics.

Accepted Answer

Laissez-faire capitalism holds that priv

Question 8

What has been the preferred strategy of U.S.lawmakers for combating the problem of global warming?

Accepted Answer

A) reducing regulation on businesses to allow more private-sector solutions to develop creatively 
B) raising interest rates to slow down the economy 
C) business-tradable carbon tax credits 
D) reduction of carbon emissions 
E) alternative energy sources and energy conservation 
A) reducing regulation on businesses to allow more private-sector solutions to develop creatively 
B) raising interest rates to slow down the economy 
C) business-tradable carbon tax credits 
D) reduction of carbon emissions 
E) alternative energy sources and energy conservation

Question 9

The first national park was created at ________ in 1872.

Accepted Answer

A) Acadia 
B) Yellowstone 
C) Yosemite 
D) Mammoth Cave 
E) the Grand Canyon 
A) Acadia 
B) Yellowstone 
C) Yosemite 
D) Mammoth Cave 
E) the Grand Canyon

Question 10

The ________ established minimum wages and constraints on the use of child labor.

Accepted Answer

A) Securities and Exchange Act of 1934 
B) Banking Act of 1934 
C) Airlines Deregulation Act of 1977 
D) Fair Labor Standards Act of 1938 
E) Homestead Act of 1862 
A) Securities and Exchange Act of 1934 
B) Banking Act of 1934 
C) Airlines Deregulation Act of 1977 
D) Fair Labor Standards Act of 1938 
E) Homestead Act of 1862

Question 11

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

Accepted Answer

A) increase farm production in order to meet the nation's food needs. 
B) stabilize farm income,which would otherwise fluctuate greatly due to market and weather conditions. 
C) promote farm conservation so as to preserve the productive capacity of U.S.agriculture. 
D) encourage rural development. 
E) encourage urban development. 
A) increase farm production in order to meet the nation's food needs. 
B) stabilize farm income,which would otherwise fluctuate greatly due to market and weather conditions. 
C) promote farm conservation so as to preserve the productive capacity of U.S.agriculture. 
D) encourage rural development. 
E) encourage urban development.

Question 12

The highest rate of inflation (13 percent)since World War II occurred in ________.

Accepted Answer

A) 1955 
B) 1963 
C) 1979 
D) 1991 
E) 2002 
A) 1955 
B) 1963 
C) 1979 
D) 1991 
E) 2002

Question 13

The era of "new social regulation",which addressed issues such as the environment and worker safety,differed from the previous two eras of regulatory reform in that

Accepted Answer

A) the Republican Party took the lead in placing additional regulations on business. 
B) the aim was to regulate activities of firms of many types,not just those in a particular industry. 
C) the regulatory agencies were established in a way that prevented the president from having a role in their operations. 
D) the guiding principle was self-regulation-business was given wide leeway in deciding how it would comply with the new requirement. 
E) the guiding principle was overregulation-business would be allowed almost no leeway in deciding how it would comply with new regulations. 
A) the Republican Party took the lead in placing additional regulations on business. 
B) the aim was to regulate activities of firms of many types,not just those in a particular industry. 
C) the regulatory agencies were established in a way that prevented the president from having a role in their operations. 
D) the guiding principle was self-regulation-business was given wide leeway in deciding how it would comply with the new requirement. 
E) the guiding principle was overregulation-business would be allowed almost no leeway in deciding how it would comply with new regulations.

Question 14

When the Fed was created in 1913,

Accepted Answer

A) it had no role in the management of the nation's economy. 
B) it was restricted to providing emergency loans to financial institutions. 
C) it adhered to a strictly supply-side policy focus. 
D) its primary economic management tool was to reduce inflation by restricting the money supply. 
E) it was far more likely to increase the money supply by lowering interest rates than to restrict it by raising them. 
A) it had no role in the management of the nation's economy. 
B) it was restricted to providing emergency loans to financial institutions. 
C) it adhered to a strictly supply-side policy focus. 
D) its primary economic management tool was to reduce inflation by restricting the money supply. 
E) it was far more likely to increase the money supply by lowering interest rates than to restrict it by raising them.

Question 15

Define the term fiscal policy and explain how fiscal policy can be used in response to economic conditions.
D.Roosevelt in the 1930s.When there is an economic downturn,government can increase its spending or cut individual taxes as a means of stimulating consumer (demand-side)spending.When the economy is inflationary,the opposite actions can be taken as a way of dampening consumer demand.Fiscal policy can also take a supply-side form,as it did in part during the Reagan years.Supply-side emphasizes business production and investment.The economy can be stimulated through a reduction in taxes on firms and high-income individuals.

Accepted Answer

The government's efforts to maintain a s

Question 16

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

Accepted Answer

A) 50% 
B) 5% 
C) 25% 
D) 15% 
E) 2% 
A) 50% 
B) 5% 
C) 25% 
D) 15% 
E) 2%

Question 17

What did Congress do in 1995 to reduce overregulation?

Accepted Answer

A) It cut funding for regulatory agencies like the EPA and Securities and Exchange Commission. 
B) It passed the Airlines Deregulation Act,which eliminated government-set airfares and the requirement that airlines provide service to smaller-sized cities. 
C) It restricted the president's ability to directly request administrative regulations from agency heads. 
D) It cut the budget of the Food and Drug Administration. 
E) It enacted legislation that prohibits administrators in some instances from issuing a regulation unless they can show that its benefits outweigh its costs. 
A) It cut funding for regulatory agencies like the EPA and Securities and Exchange Commission. 
B) It passed the Airlines Deregulation Act,which eliminated government-set airfares and the requirement that airlines provide service to smaller-sized cities. 
C) It restricted the president's ability to directly request administrative regulations from agency heads. 
D) It cut the budget of the Food and Drug Administration. 
E) It enacted legislation that prohibits administrators in some instances from issuing a regulation unless they can show that its benefits outweigh its costs.

Question 18

Monetary policy differs from fiscal policy in that

Accepted Answer

A) it has to be exercised by the legislature. 
B) the policy goals are very different. 
C) it is a slower process than fiscal policy. 
D) it can be implemented more quickly than fiscal policy. 
E) None of these answers is correct. 
A) it has to be exercised by the legislature. 
B) the policy goals are very different. 
C) it is a slower process than fiscal policy. 
D) it can be implemented more quickly than fiscal policy. 
E) None of these answers is correct.

Question 19

The tax cuts pushed by President George W.Bush while in office were premised largely on

Accepted Answer

A) demand-side economics. 
B) supply-side economics. 
C) fiscal policy. 
D) monetary policy. 
E) Keynesian economics. 
A) demand-side economics. 
B) supply-side economics. 
C) fiscal policy. 
D) monetary policy. 
E) Keynesian economics.

Question 20

Supply-side economics,as implemented by President George W.Bush's administration,involved

Accepted Answer

A) the supply component of the supply-demand equation. 
B) stressing the importance of tax cuts for businesses. 
C) stressing the importance of tax cuts for the wealthy. 
D) an increase in the size of the national debt. 
E) All these answers are correct. 
A) the supply component of the supply-demand equation. 
B) stressing the importance of tax cuts for businesses. 
C) stressing the importance of tax cuts for the wealthy. 
D) an increase in the size of the national debt. 
E) All these answers are correct.

Farm subsidies have traditionally had strong support in Congress,particularly from

If the economic problem is low productivity and high unemployment,the fiscal policy action on the demand side would be to

The Federal Reserve plays a large part in establishing ________ policy.

Which is true regarding the nation's environmental policy?

Which of the following statements is true?

Members of the Federal Reserve Board

Describe Adam Smith's laissez-faire model of economics.

What has been the preferred strategy of U.S.lawmakers for combating the problem of global warming?

The first national park was created at ________ in 1872.

The ________ established minimum wages and constraints on the use of child labor.

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

The highest rate of inflation (13 percent)since World War II occurred in ________.

The era of "new social regulation",which addressed issues such as the environment and worker safety,differed from the previous two eras of regulatory reform in that

When the Fed was created in 1913,

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

What did Congress do in 1995 to reduce overregulation?

Monetary policy differs from fiscal policy in that

The tax cuts pushed by President George W.Bush while in office were premised largely on

Supply-side economics,as implemented by President George W.Bush's administration,involved

Political Thinking and Political Culture: Becoming a Responsible Citizen

Constitutional Democracy: Promoting Liberty and Self-Government

Federalism: Forging a Nation

Civil Liberties: Protecting Individual Rights

Equal Rights: Struggling Toward Fairness

Public Opinion and Political Socialization: Shaping the Peoples Voice

Political Participation: Activating the Popular Will

Political Parties, Candidates, and Campaigns: Defining the Voters Choice

Interest Groups: Organizing for Influence

The News Media: Communicating Political Images

Congress: Balancing National Goals and Local Interests

The Presidency: Leading the Nation

The Federal Bureaucracy: Administering the Government

The Federal Judicial System: Applying the Law

Welfare and Education Policy: Providing for Personal Security and Need

Foreign Policy: Protecting the American Way

State and Local Politics: Maintaining Our Differences

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Exam 15: Economic and Environmental Policy: Contributing to Prosperity

Farm subsidies have traditionally had strong support in Congress,particularly from

If the economic problem is low productivity and high unemployment,the fiscal policy action on the demand side would be to

The Federal Reserve plays a large part in establishing ________ policy.

Which is true regarding the nation's environmental policy?

Which of the following statements is true?

Members of the Federal Reserve Board

Describe Adam Smith's laissez-faire model of economics.

What has been the preferred strategy of U.S.lawmakers for combating the problem of global warming?

The first national park was created at ________ in 1872.

The ________ established minimum wages and constraints on the use of child labor.

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

The highest rate of inflation (13 percent)since World War II occurred in ________.

The era of "new social regulation",which addressed issues such as the environment and worker safety,differed from the previous two eras of regulatory reform in that

When the Fed was created in 1913,

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

What did Congress do in 1995 to reduce overregulation?

Monetary policy differs from fiscal policy in that

The tax cuts pushed by President George W.Bush while in office were premised largely on

Supply-side economics,as implemented by President George W.Bush's administration,involved

Political Thinking and Political Culture: Becoming a Responsible Citizen

Constitutional Democracy: Promoting Liberty and Self-Government

Federalism: Forging a Nation

Civil Liberties: Protecting Individual Rights

Equal Rights: Struggling Toward Fairness

Public Opinion and Political Socialization: Shaping the Peoples Voice

Political Participation: Activating the Popular Will

Political Parties, Candidates, and Campaigns: Defining the Voters Choice

Interest Groups: Organizing for Influence

The News Media: Communicating Political Images

Congress: Balancing National Goals and Local Interests

The Presidency: Leading the Nation

The Federal Bureaucracy: Administering the Government

The Federal Judicial System: Applying the Law

Welfare and Education Policy: Providing for Personal Security and Need

Foreign Policy: Protecting the American Way

State and Local Politics: Maintaining Our Differences

Filters