Exam 15: Economic Policy

The federal cigarette tax is an example of a ________ policy.

The ________ is the total amount of money owed to lenders by the U.S. government.

Which amendment to the U.S. Constitution empowered Congress to tax personal income?

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.

________ is an economic philosophy that advocates the government not intervene in the economy and leave market forces to influence the economic behavior of individuals and firms.

Because people with lower incomes spend a greater portion of their money on it, sales tax is considered ________.

The city of Brentwood maintains a small pavilion in its Central Park with a barbeque grill. Anyone may reserve the pavilion for an event, but the pavilion can only accommodate one event at a time. Brentwood's pavilion is a ________ good.

A tax is ________ if it places a greater financial burden on the wealthy.

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

What are private goods, club goods, common goods, and public goods? How are these different types of goods similar? How are they different? Give an example of each. Why are the distinctions among different types of goods important for designing public policies?

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

If spending reflects priorities, the main priorities in the United States are ________.

The city of Boston puts on a large fireworks display on the Charles River each Independence Day. The city does not charge admission to the event, and the promenade along the river is large enough to accommodate all the spectators who arrive for the show. Boston's fireworks display is a ________ good.

Governments can ________ interest rates to make it ________ for businesses and consumers to borrow money for investments and purchases.

________ is a possible result of low unemployment because wages become higher and thus the cost of goods increases.

By and large, banks are regulated at the ________ level through the ________ system.

Which refers to a policy that involves the supply of money in the economy?

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

When you and your friends enjoy loud music at a party late at night, your neighbors also experience that noise and may not appreciate it. Your enjoyment of a benefit-music played loudly-affects others who consider it a cost. This spillover is an example of a/an ________.

Since 1917, ________ taxes have been the chief source of revenue for the U.S. government.