Question 1

The federal government has assumed a permanent,strong role in the economy,contributing to its stability and efficiency,since the

Accepted Answer

A) 1930s. 
B) 1860s. 
C) 1960s. 
D) 1980s. 
E) 2000s. 
A) 1930s. 
B) 1860s. 
C) 1960s. 
D) 1980s. 
E) 2000s.

Question 2

Explain the difference between economic efficiency and economic equity as principles that justify government regulation of the economy.

Accepted Answer

An economy is a system of production and

Question 3

When was the last time the U.S.government had a balanced budget?

Accepted Answer

A) 1970s 
B) 1980s 
C) 1990s 
D) 2000s 
E) None of these answers is correct. 
A) 1970s 
B) 1980s 
C) 1990s 
D) 2000s 
E) None of these answers is correct.

Question 4

Supply-side economics is based primarily on

Accepted Answer

A) stimulation of the business (supply)component. 
B) government stimulation of consumer demands. 
C) a repudiation of trickle-down theory. 
D) increases in taxation. 
E) increases in government regulation. 
A) stimulation of the business (supply)component. 
B) government stimulation of consumer demands. 
C) a repudiation of trickle-down theory. 
D) increases in taxation. 
E) increases in government regulation.

Question 5

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Accepted Answer

A) supply-side safety. 
B) demand-side safety. 
C) equity. 
D) efficiency. 
E) profit. 
A) supply-side safety. 
B) demand-side safety. 
C) equity. 
D) efficiency. 
E) profit.

Question 6

Farm subsidies account for approximately ________ of net agricultural income,making America's farmers among the most heavily subsidized in the world.

Accepted Answer

A) ten percent 
B) one-fifth 
C) a third 
D) one-seventh 
E) two-thirds 
A) ten percent 
B) one-fifth 
C) a third 
D) one-seventh 
E) two-thirds

Question 7

Which of the following statements BEST describes the relationship today between government and the economy in the United States?

Accepted Answer

A) The economy is largely self-regulating. 
B) The government subsidizes economic interests but otherwise leaves them to operate as they please. 
C) The government is the driving force in the U.S.economy; business has a secondary role. 
D) The government participates in the economy though the regulation of privately owned businesses. 
E) The government owns most of the means of production in the United States. 
A) The economy is largely self-regulating. 
B) The government subsidizes economic interests but otherwise leaves them to operate as they please. 
C) The government is the driving force in the U.S.economy; business has a secondary role. 
D) The government participates in the economy though the regulation of privately owned businesses. 
E) The government owns most of the means of production in the United States.

Question 8

Which president's use of government policy to stimulated the economy ushered in the modern era of U.S.government fiscal policy?

Accepted Answer

A) Thomas Jefferson 
B) Franklin Roosevelt 
C) Lyndon Johnson 
D) Woodrow Wilson 
E) William Clinton 
A) Thomas Jefferson 
B) Franklin Roosevelt 
C) Lyndon Johnson 
D) Woodrow Wilson 
E) William Clinton

Question 9

Democrats in Washington have usually responded to high levels of unemployment with

Accepted Answer

A) reduced government spending. 
B) increased government spending. 
C) increased government taxes. 
D) decreased government taxes. 
E) decreased government regulation. 
A) reduced government spending. 
B) increased government spending. 
C) increased government taxes. 
D) decreased government taxes. 
E) decreased government regulation.

Question 10

Which of the following government agencies regulates business competition?

Accepted Answer

A) Federal Trade Commission 
B) Interstate Commerce Commission 
C) Securities and Exchange Commission 
D) all of these: the Federal Trade Commission; the Interstate Commerce Commission; and the Securities and Exchange Commission 
E) None of these answers is correct. 
A) Federal Trade Commission 
B) Interstate Commerce Commission 
C) Securities and Exchange Commission 
D) all of these: the Federal Trade Commission; the Interstate Commerce Commission; and the Securities and Exchange Commission 
E) None of these answers is correct.

Question 11

Supply-side economics,as implemented by the Reagan and Bush administrations,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 of 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 of these answers are correct.

Question 12

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 and George W.Bush 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 13

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 14

The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

Accepted Answer

A) computer technology. 
B) the buying and selling of stocks. 
C) interest rates charged to banks. 
D) subprime mortgages. 
E) the buying and selling of junk bonds. 
A) computer technology. 
B) the buying and selling of stocks. 
C) interest rates charged to banks. 
D) subprime mortgages. 
E) the buying and selling of junk bonds.

Question 15

If the Fed wanted to act to increase borrowing by firms and consumers and thus hopefully reduce unemployment,it would

Accepted Answer

A) sell securities. 
B) raise the reserve rate. 
C) decrease the interest rate on loans to member banks. 
D) increase the interest rate on loans to member banks. 
E) encourage people to save more and spend less. 
A) sell securities. 
B) raise the reserve rate. 
C) decrease the interest rate on loans to member banks. 
D) increase the interest rate on loans to member banks. 
E) encourage people to save more and spend less.

Question 16

What happened after Lehman Brothers went out of business in September of 2008?

Accepted Answer

A) The stock market rose dramatically. 
B) The stock market rose slightly. 
C) The stock market was essentially unchanged. 
D) The stock market dropped slightly. 
E) The stock market dropped dramatically. 
A) The stock market rose dramatically. 
B) The stock market rose slightly. 
C) The stock market was essentially unchanged. 
D) The stock market dropped slightly. 
E) The stock market dropped dramatically.

Question 17

A fiscal policy solution to inflation would be to

Accepted Answer

A) decrease government spending. 
B) lower tariffs and other barriers to trade. 
C) increase the prime interest rate. 
D) raise the discount rate. 
E) decrease the tax rate. 
A) decrease government spending. 
B) lower tariffs and other barriers to trade. 
C) increase the prime interest rate. 
D) raise the discount rate. 
E) decrease the tax rate.

Question 18

On the whole,American politicians have been LEAST willing to ________ in order to combat global warming.

Accepted Answer

A) reduce carbon emissions 
B) encourage clean energy 
C) encourage energy conservation 
D) consider alternative energy sources 
E) raise fuel standards for vehicles 
A) reduce carbon emissions 
B) encourage clean energy 
C) encourage energy conservation 
D) consider alternative energy sources 
E) raise fuel standards for vehicles

Question 19

Judged in the context of the full range of public policies,the government in the United States has been

Accepted Answer

A) equally hostile to the interests of business and labor. 
B) equally supportive of the interests of business and labor. 
C) substantially more supportive of business than labor. 
D) substantially more supportive of labor than business. 
E) substantially more supportive of left-wing radicals than conservatives. 
A) equally hostile to the interests of business and labor. 
B) equally supportive of the interests of business and labor. 
C) substantially more supportive of business than labor. 
D) substantially more supportive of labor than business. 
E) substantially more supportive of left-wing radicals than conservatives.

Question 20

The primary purpose of the Troubled Asset Relief Program was to

Accepted Answer

A) quickly provide jobs to the unemployed. 
B) shore up shaky financial institutions. 
C) lower the rate of inflation. 
D) demonstrate that only the Fed controlled economic policy. 
E) help out the European economy and boost demand for American exports. 
A) quickly provide jobs to the unemployed. 
B) shore up shaky financial institutions. 
C) lower the rate of inflation. 
D) demonstrate that only the Fed controlled economic policy. 
E) help out the European economy and boost demand for American exports.

The federal government has assumed a permanent,strong role in the economy,contributing to its stability and efficiency,since the

Explain the difference between economic efficiency and economic equity as principles that justify government regulation of the economy.

When was the last time the U.S.government had a balanced budget?

Supply-side economics is based primarily on

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Farm subsidies account for approximately ________ of net agricultural income,making America's farmers among the most heavily subsidized in the world.

Which of the following statements BEST describes the relationship today between government and the economy in the United States?

Which president's use of government policy to stimulated the economy ushered in the modern era of U.S.government fiscal policy?

Democrats in Washington have usually responded to high levels of unemployment with

Which of the following government agencies regulates business competition?

Supply-side economics,as implemented by the Reagan and Bush administrations,involved

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

The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

If the Fed wanted to act to increase borrowing by firms and consumers and thus hopefully reduce unemployment,it would

What happened after Lehman Brothers went out of business in September of 2008?

A fiscal policy solution to inflation would be to

On the whole,American politicians have been LEAST willing to ________ in order to combat global warming.

Judged in the context of the full range of public policies,the government in the United States has been

The primary purpose of the Troubled Asset Relief Program was to

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

The federal government has assumed a permanent,strong role in the economy,contributing to its stability and efficiency,since the

Explain the difference between economic efficiency and economic equity as principles that justify government regulation of the economy.

When was the last time the U.S.government had a balanced budget?

Supply-side economics is based primarily on

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

Farm subsidies account for approximately ________ of net agricultural income,making America's farmers among the most heavily subsidized in the world.

Which of the following statements BEST describes the relationship today between government and the economy in the United States?

Which president's use of government policy to stimulated the economy ushered in the modern era of U.S.government fiscal policy?

Democrats in Washington have usually responded to high levels of unemployment with

Which of the following government agencies regulates business competition?

Supply-side economics,as implemented by the Reagan and Bush administrations,involved

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

The Great Recession,which began in 2008,was precipitated primarily because the federal government was too lax in regulating

If the Fed wanted to act to increase borrowing by firms and consumers and thus hopefully reduce unemployment,it would

What happened after Lehman Brothers went out of business in September of 2008?

A fiscal policy solution to inflation would be to

On the whole,American politicians have been LEAST willing to ________ in order to combat global warming.

Judged in the context of the full range of public policies,the government in the United States has been

The primary purpose of the Troubled Asset Relief Program was to

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