Question 1

A major point of debate surrounding the Federal Reserve's role in economic policy is

Accepted Answer

A) the Fed's political accountability. 
B) whether the president should be able to veto the Fed's decisions. 
C) the issue of competence. 
D) whether Congress should be able to reject the Fed's decisions. 
E) None of these answers is correct. 
A) the Fed's political accountability. 
B) whether the president should be able to veto the Fed's decisions. 
C) the issue of competence. 
D) whether Congress should be able to reject the Fed's decisions. 
E) None of these answers is correct.

Question 2

Which country has the HIGHEST annual emissions of carbon dioxide?

Accepted Answer

A) United States 
B) China 
C) Japan 
D) India 
E) Great Britain 
A) United States 
B) China 
C) Japan 
D) India 
E) Great Britain

Question 3

Advocates of deregulation are primarily concerned with

Accepted Answer

A) efficiency. 
B) equity. 
C) externalities. 
D) public safety. 
E) political expediency. 
A) efficiency. 
B) equity. 
C) externalities. 
D) public safety. 
E) political expediency.

Question 4

One focus of the Progressive Era of government regulation was

Accepted Answer

A) strengthening consumer protection by preventing credit agencies from gouging individuals with high levels of debt. 
B) bolstering worker safety by increasing the power of unions and forcing better safety practices on businesses. 
C) increasing environmental protection and strengthening the EPA. 
D) regulating troubled economic sectors,such as banking. 
E) stopping corrupt business practices such as the sale of unsafe food and drugs. 
A) strengthening consumer protection by preventing credit agencies from gouging individuals with high levels of debt. 
B) bolstering worker safety by increasing the power of unions and forcing better safety practices on businesses. 
C) increasing environmental protection and strengthening the EPA. 
D) regulating troubled economic sectors,such as banking. 
E) stopping corrupt business practices such as the sale of unsafe food and drugs.

Question 5

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

Accepted Answer

Laissez-faire capitalism holds that priv

Question 6

The Fed is directed by a board of governors whose seven members

Accepted Answer

A) serve for 14 years. 
B) hold office during good behavior,in essence a lifetime appointment. 
C) serve for 4 years. 
D) retain their seat as long as the president who nominated them is in office. 
E) serve for no more than three consecutive 6-year terms. 
A) serve for 14 years. 
B) hold office during good behavior,in essence a lifetime appointment. 
C) serve for 4 years. 
D) retain their seat as long as the president who nominated them is in office. 
E) serve for no more than three consecutive 6-year terms.

Question 7

In The Wealth of Nations (1776),Adam Smith made all of the following arguments for laissez-faire capitalism,EXCEPT

Accepted Answer

A) that the desire for profit is the invisible hand that guides a capitalist system. 
B) that the government should not be allowed any role whatsoever in the economy. 
C) that private firms should be left alone to make their production and distribution decisions. 
D) that the government should regulate banking,currency,and contracts. 
E) that certain areas of the economy were better run by government agencies. 
A) that the desire for profit is the invisible hand that guides a capitalist system. 
B) that the government should not be allowed any role whatsoever in the economy. 
C) that private firms should be left alone to make their production and distribution decisions. 
D) that the government should regulate banking,currency,and contracts. 
E) that certain areas of the economy were better run by government agencies.

Question 8

High levels of government spending or deep cuts in taxes result in a(n)________ in which the federal government spends more in a year than it receives in tax and other revenues.

Accepted Answer

A) trade deficit 
B) budget deficit 
C) national debt 
D) credit imbalance 
E) income disparity 
A) trade deficit 
B) budget deficit 
C) national debt 
D) credit imbalance 
E) income disparity

Question 9

Define the term monetary policy,and describe three ways the Fed implements monetary policy.

Accepted Answer

Monetary policy is based on manipulation

Question 10

During what has become known as the Great Recession,the Fed began to purchase the assets of member banks.This new monetary control mechanism used by the Fed was known as

Accepted Answer

A) subprime borrowing. 
B) the Greenspan Plan. 
C) quantitative easing. 
D) hyper inflation. 
E) too big to fail. 
A) subprime borrowing. 
B) the Greenspan Plan. 
C) quantitative easing. 
D) hyper inflation. 
E) too big to fail.

Question 11

The tax cuts pushed by the Reagan and Bush administrations 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 12

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 13

The Federal Reserve controls the money supply through all of the following actions EXCEPT

Accepted Answer

A) raising the cash reserve that member banks are required to deposit with the Federal Reserve. 
B) raising the interest rate that member banks are charged when they borrow from the Federal Reserve. 
C) lowering the cash reserve that member banks are required to deposit with the Federal Reserve. 
D) lowering the interest rate that member banks are charged when they borrow from the Federal Reserve. 
E) lowering the tax rate on individuals. 
A) raising the cash reserve that member banks are required to deposit with the Federal Reserve. 
B) raising the interest rate that member banks are charged when they borrow from the Federal Reserve. 
C) lowering the cash reserve that member banks are required to deposit with the Federal Reserve. 
D) lowering the interest rate that member banks are charged when they borrow from the Federal Reserve. 
E) lowering the tax rate on individuals.

Question 14

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

Accepted Answer

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

Question 15

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 16

The term externalities refers to

Accepted Answer

A) regulations imposed on a firm by government. 
B) a nation that is a trading partner of another nation. 
C) the costs of production that are incurred by society. 
D) tariffs imposed on American goods exported to other countries. 
E) None of these answers is correct. 
A) regulations imposed on a firm by government. 
B) a nation that is a trading partner of another nation. 
C) the costs of production that are incurred by society. 
D) tariffs imposed on American goods exported to other countries. 
E) None of these answers is correct.

Question 17

What was a major change brought about by the National Labor Relations Act of 1935?

Accepted Answer

A) It established the national minimum wage. 
B) It broke up business monopolies in order to give workers more choice in employers. 
C) Workers were given the right to bargain collectively. 
D) It eliminated the ability of companies to bargain directly with unions. 
E) It reduced the ability of workers to go on strike indefinitely. 
A) It established the national minimum wage. 
B) It broke up business monopolies in order to give workers more choice in employers. 
C) Workers were given the right to bargain collectively. 
D) It eliminated the ability of companies to bargain directly with unions. 
E) It reduced the ability of workers to go on strike indefinitely.

Question 18

Of the following countries,which has done the LEAST to reduce greenhouse gas emissions?

Accepted Answer

A) Germany 
B) France 
C) Great Britain 
D) United States 
E) These countries have been about equal in their efforts to reduce greenhouse gas emissions. 
A) Germany 
B) France 
C) Great Britain 
D) United States 
E) These countries have been about equal in their efforts to reduce greenhouse gas emissions.

Question 19

The ________ established minimum wages.

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 20

Which of the following is correct about environmental policy?

Accepted Answer

A) The national forests are protected from the exploitive "dual use policy." 
B) The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress. 
C) Environmental regulation has led to dramatic improvements in air and water quality. 
D) Policymakers always give more consideration to environmental protection than to economic development when the two conflict. 
E) None of these answers is correct. 
A) The national forests are protected from the exploitive "dual use policy." 
B) The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress. 
C) Environmental regulation has led to dramatic improvements in air and water quality. 
D) Policymakers always give more consideration to environmental protection than to economic development when the two conflict. 
E) None of these answers is correct.

A major point of debate surrounding the Federal Reserve's role in economic policy is

Which country has the HIGHEST annual emissions of carbon dioxide?

Advocates of deregulation are primarily concerned with

One focus of the Progressive Era of government regulation was

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

The Fed is directed by a board of governors whose seven members

In The Wealth of Nations (1776),Adam Smith made all of the following arguments for laissez-faire capitalism,EXCEPT

High levels of government spending or deep cuts in taxes result in a(n)________ in which the federal government spends more in a year than it receives in tax and other revenues.

Define the term monetary policy,and describe three ways the Fed implements monetary policy.

During what has become known as the Great Recession,the Fed began to purchase the assets of member banks.This new monetary control mechanism used by the Fed was known as

The tax cuts pushed by the Reagan and Bush administrations were premised largely on

Which of the following statements is true?

The Federal Reserve controls the money supply through all of the following actions EXCEPT

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

Monetary policy differs from fiscal policy in that

The term externalities refers to

What was a major change brought about by the National Labor Relations Act of 1935?

Of the following countries,which has done the LEAST to reduce greenhouse gas emissions?

The ________ established minimum wages.

Which of the following is correct about environmental policy?

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

Income,welfare,and Education Policy: Providing for Personal Security

Foreign Policy: Protecting the American Way

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Exam 15: Economic and Environmental Policy: Contributing to Prosperity

A major point of debate surrounding the Federal Reserve's role in economic policy is

Which country has the HIGHEST annual emissions of carbon dioxide?

Advocates of deregulation are primarily concerned with

One focus of the Progressive Era of government regulation was

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

The Fed is directed by a board of governors whose seven members

In The Wealth of Nations (1776),Adam Smith made all of the following arguments for laissez-faire capitalism,EXCEPT

High levels of government spending or deep cuts in taxes result in a(n)________ in which the federal government spends more in a year than it receives in tax and other revenues.

Define the term monetary policy,and describe three ways the Fed implements monetary policy.

During what has become known as the Great Recession,the Fed began to purchase the assets of member banks.This new monetary control mechanism used by the Fed was known as

The tax cuts pushed by the Reagan and Bush administrations were premised largely on

Which of the following statements is true?

The Federal Reserve controls the money supply through all of the following actions EXCEPT

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

Monetary policy differs from fiscal policy in that

The term externalities refers to

What was a major change brought about by the National Labor Relations Act of 1935?

Of the following countries,which has done the LEAST to reduce greenhouse gas emissions?

The ________ established minimum wages.

Which of the following is correct about environmental policy?

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

Income,welfare,and Education Policy: Providing for Personal Security

Foreign Policy: Protecting the American Way

Filters