Question 1

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 2

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 3

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 4

Which of the following is correct about environmental policy?

Accepted Answer

A) The national parks are subject to a dual use policy of preservation,recreation,and exploitation of the rich natural resources. 
B) The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress. 
C) Environmental regulation has done little to improve 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 parks are subject to a dual use policy of preservation,recreation,and exploitation of the rich natural resources. 
B) The Environmental Protection Agency was elevated to cabinet status in 1998 by President Clinton and the Republican Congress. 
C) Environmental regulation has done little to improve 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.

Question 5

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 6

Fiscal policy is a mechanism the government employs to influence the economy.Fiscal policy is based on

Accepted Answer

A) the idea that a balanced budget is the key to a healthy economy. 
B) the money supply. 
C) the government's taxing and spending decisions. 
D) the importance of maintaining a 12-month (fiscal year)economic cycle. 
E) the projections of the Federal Reserve Board. 
A) the idea that a balanced budget is the key to a healthy economy. 
B) the money supply. 
C) the government's taxing and spending decisions. 
D) the importance of maintaining a 12-month (fiscal year)economic cycle. 
E) the projections of the Federal Reserve Board.

Question 7

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 employer. 
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 employer. 
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 8

The Superfund program is designed to

Accepted Answer

A) bail out financial institutions that are considered too large to collapse. 
B) provide domestic farmers with subsidies in order to remain competitive with international farming. 
C) provide funds for cleaning up badly contaminated and polluted sites. 
D) provide the president with emergency funds to deal with major natural disasters. 
E) None of these answers is correct. 
A) bail out financial institutions that are considered too large to collapse. 
B) provide domestic farmers with subsidies in order to remain competitive with international farming. 
C) provide funds for cleaning up badly contaminated and polluted sites. 
D) provide the president with emergency funds to deal with major natural disasters. 
E) None of these answers is correct.

Question 9

The Tennessee Valley Authority is

Accepted Answer

A) an electricity industry owned by the United States. 
B) a private industry regulated by the United States. 
C) a private electricity industry exempt from government regulation. 
D) a private environmental organization that receives federal funding. 
E) a private environmental organization with power to regulate industry. 
A) an electricity industry owned by the United States. 
B) a private industry regulated by the United States. 
C) a private electricity industry exempt from government regulation. 
D) a private environmental organization that receives federal funding. 
E) a private environmental organization with power to regulate industry.

Question 10

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 11

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 12

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) unpaid 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) unpaid 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 13

In John Maynard Keynes's demand-side economic theory,an economic recession can be shortened through

Accepted Answer

A) government spending programs. 
B) the natural workings of the free-market system. 
C) a lowering of tariffs in the global economy. 
D) a determination on the part of government not to spend any more than it receives in taxes. 
E) tax cuts for the wealthy. 
A) government spending programs. 
B) the natural workings of the free-market system. 
C) a lowering of tariffs in the global economy. 
D) a determination on the part of government not to spend any more than it receives in taxes. 
E) tax cuts for the wealthy.

Question 14

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 15

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 16

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 17

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

Accepted Answer

A) promote equity in the economy. 
B) eliminate the problem of externalities in the economy. 
C) destroy the legal foundation of the business trust. 
D) promote efficiency in the economy. 
E) None of these answers is correct. 
A) promote equity in the economy. 
B) eliminate the problem of externalities in the economy. 
C) destroy the legal foundation of the business trust. 
D) promote efficiency in the economy. 
E) None of these answers is correct.

Question 18

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 19

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 20

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%

Monetary policy differs from fiscal policy in that

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

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

Which of the following is correct about environmental policy?

When the Fed was created in 1913,

Fiscal policy is a mechanism the government employs to influence the economy.Fiscal policy is based on

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

The Superfund program is designed to

The Tennessee Valley Authority is

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

Advocates of deregulation are primarily concerned with

The term externalities refers to

In John Maynard Keynes's demand-side economic theory,an economic recession can be shortened through

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

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

Supply-side economics is based primarily on

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

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

Members of the Federal Reserve Board

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

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

Monetary policy differs from fiscal policy in that

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

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

Which of the following is correct about environmental policy?

When the Fed was created in 1913,

Fiscal policy is a mechanism the government employs to influence the economy.Fiscal policy is based on

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

The Superfund program is designed to

The Tennessee Valley Authority is

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

Advocates of deregulation are primarily concerned with

The term externalities refers to

In John Maynard Keynes's demand-side economic theory,an economic recession can be shortened through

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

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

Supply-side economics is based primarily on

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

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

Members of the Federal Reserve Board

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

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