Question 1

Interest payments on the national debt became a major part of federal budgets during the 1980s.

Accepted Answer

A) True 
 B)False  True

Question 2

The impact of entitlement programs is an obstacle to effective economic policy.Which of the following are considered entitlement programs?

Accepted Answer

A) Social Security and Teach for America 
B) Social Security, Medicare and Medicaid 
C) Medicare, Peace Corps, and Social Security 
A) Social Security and Teach for America 
B) Social Security, Medicare and Medicaid 
C) Medicare, Peace Corps, and Social Security B

Question 3

Deficit spending without fueling inflation is possible through government borrowing.This approach was used by all recent presidents except for:

Accepted Answer

A) George W.Bush 
B) Ronald Reagan 
C) Jimmy Carter 
D) Barack Obama 
A) George W.Bush 
B) Ronald Reagan 
C) Jimmy Carter 
D) Barack Obama C

Question 4

When government expenditures exceed revenues,we have

Accepted Answer

A) cost-push inflation 
B) monetary policy 
C) recession 
D) deficit spending 
A) cost-push inflation 
B) monetary policy 
C) recession 
D) deficit spending

Question 5

The federal budget acts as a component of fiscal policy by

Accepted Answer

A) stimulating the economy as deficits are reduced 
B) stimulating the economy as deficits are increased 
C) controlling the growth of the money supply 
D) changing the discount rate 
A) stimulating the economy as deficits are reduced 
B) stimulating the economy as deficits are increased 
C) controlling the growth of the money supply 
D) changing the discount rate

Question 6

Economist John Galbraith and Milton Friedman agree that government controls help businesses operate profitably.

Accepted Answer

A) True 
 B)False

Question 7

During the 1990s the U.S.experienced

Accepted Answer

A) economic growth 
B) low unemployment 
C) low interest rates 
D) all of the above 
E) none of the above 
A) economic growth 
B) low unemployment 
C) low interest rates 
D) all of the above 
E) none of the above

Question 8

Fragmentation within the executive branch of government is an obstacle to developing economic policy.Which of these cabinet-level departments does not have responsibility for economic policy?

Accepted Answer

A) Treasury Department 
B) Office of Management and Budget 
C) Labor Department 
D) Commerce Department 
A) Treasury Department 
B) Office of Management and Budget 
C) Labor Department 
D) Commerce Department

Question 9

The discount rate is the rate of interest charged by the feds on loans to banks.It is used as a tool by the feds to:

Accepted Answer

A) Control the money supply 
B) Encourage people to spend money 
C) Make it more costly to borrow 
D) Stimulate or cool off the economy 
A) Control the money supply 
B) Encourage people to spend money 
C) Make it more costly to borrow 
D) Stimulate or cool off the economy

Question 10

One way to stimulate growth in the economy is to

Accepted Answer

A) have a high trade deficit 
B) raise taxes 
C) increase the size of the federal deficit 
D) increase unemployment 
A) have a high trade deficit 
B) raise taxes 
C) increase the size of the federal deficit 
D) increase unemployment

Question 11

Keynes argues that government deficit spending

Accepted Answer

A) causes economic recession 
B) stimulates a sluggish economy and prevents recessions 
C) can balance the budget 
D) causes increased taxes 
A) causes economic recession 
B) stimulates a sluggish economy and prevents recessions 
C) can balance the budget 
D) causes increased taxes

Question 12

The value of American currency is dependent on the reserves of gold held by the U.S.Treasury Department.

Accepted Answer

A) True 
 B)False

Question 13

Budget deficits reappeared in 2002 as a result of a number of factors.Those factors include all but

Accepted Answer

A) an economic downturn due to the September 11, 2001 terrorist attack 
B) increased spending for Homeland Security efforts 
C) the financial costs associated with Operation Iraqi Freedom 
D) the increased cost of a barrel of oil from OPEC 
A) an economic downturn due to the September 11, 2001 terrorist attack 
B) increased spending for Homeland Security efforts 
C) the financial costs associated with Operation Iraqi Freedom 
D) the increased cost of a barrel of oil from OPEC

Question 14

Which of the following U.S.presidents LEFT office with a budget surplus?

Accepted Answer

A) Jimmy Carter 
B) Ronald Reagan 
C) George H.W.Bush 
D) Bill Clinton 
A) Jimmy Carter 
B) Ronald Reagan 
C) George H.W.Bush 
D) Bill Clinton

Question 15

What was the purpose of TARP and has it been successful?

Accepted Answer

The answer of What was the purpose of TARP and...

Question 16

The Balanced Budget Act of 1997 and the performance of the economy in the 1990s produced the result that the federal budget deficit in the late 1990s

Accepted Answer

A) rose rapidly 
B) rose slowly 
C) became a surplus 
D) stayed about the same 
A) rose rapidly 
B) rose slowly 
C) became a surplus 
D) stayed about the same

Question 17

Which of the following is NOT a cause of inflation?

Accepted Answer

A) increase in demand 
B) increase in cost of production 
C) increase in supply 
A) increase in demand 
B) increase in cost of production 
C) increase in supply

Question 18

Tax reductions in the form of tax incentives can encourage corporations to

Accepted Answer

A) hire more people 
B) spend more money 
C) save more money. 
D) invest in plant expansion. 
A) hire more people 
B) spend more money 
C) save more money. 
D) invest in plant expansion.

Question 19

The Federal Reserve Board oversees the operations of banks that participate in the Federal Reserve System.It has the power to do the following except:

Accepted Answer

A) lend member banks money. 
B) control the amount of money a bank has on reserve. 
C) print money. 
D) buy up governmental bond held by investors. 
A) lend member banks money. 
B) control the amount of money a bank has on reserve. 
C) print money. 
D) buy up governmental bond held by investors.

Question 20

_____________ is the rise in price of goods and services,even though the actual value of those goods and services does not increase.

Accepted Answer

A) Recession 
B) Depression 
C) Inflation 
D) Deregulation 
A) Recession 
B) Depression 
C) Inflation 
D) Deregulation

Interest payments on the national debt became a major part of federal budgets during the 1980s.

The impact of entitlement programs is an obstacle to effective economic policy.Which of the following are considered entitlement programs?

Deficit spending without fueling inflation is possible through government borrowing.This approach was used by all recent presidents except for:

When government expenditures exceed revenues,we have

The federal budget acts as a component of fiscal policy by

Economist John Galbraith and Milton Friedman agree that government controls help businesses operate profitably.

During the 1990s the U.S.experienced

Fragmentation within the executive branch of government is an obstacle to developing economic policy.Which of these cabinet-level departments does not have responsibility for economic policy?

The discount rate is the rate of interest charged by the feds on loans to banks.It is used as a tool by the feds to:

One way to stimulate growth in the economy is to

Keynes argues that government deficit spending

The value of American currency is dependent on the reserves of gold held by the U.S.Treasury Department.

Budget deficits reappeared in 2002 as a result of a number of factors.Those factors include all but

Which of the following U.S.presidents LEFT office with a budget surplus?

What was the purpose of TARP and has it been successful?

The Balanced Budget Act of 1997 and the performance of the economy in the 1990s produced the result that the federal budget deficit in the late 1990s

Which of the following is NOT a cause of inflation?

Tax reductions in the form of tax incentives can encourage corporations to

The Federal Reserve Board oversees the operations of banks that participate in the Federal Reserve System.It has the power to do the following except:

_____________ is the rise in price of goods and services,even though the actual value of those goods and services does not increase.

Public Policy: An Introduction

Contexts of Public Policy

The Economy: Changing Government-Business Relationships

Energy and Environmental Policies: Policy Instability

Crime and Criminal Justice: Dilemmas of Social Control

Poverty and Social Welfare Policy

Health Care: Transformation or Continued Crisis?

Education: Conflict in Policy Direction

Legal and Social Equality: The Struggle against Oppression and Bigotry

Immigration Policy: The Barely Open Door

Foreign and Defense Policy: Security and Interests in a Dangerous World

Private Morality and Public Policy: Moral Values, the Constitution, and the Open Society

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Exam 4: Economic Issues: Taxing, Spending, and Budgeting

Interest payments on the national debt became a major part of federal budgets during the 1980s.

The impact of entitlement programs is an obstacle to effective economic policy.Which of the following are considered entitlement programs?

Deficit spending without fueling inflation is possible through government borrowing.This approach was used by all recent presidents except for:

When government expenditures exceed revenues,we have

The federal budget acts as a component of fiscal policy by

Economist John Galbraith and Milton Friedman agree that government controls help businesses operate profitably.

During the 1990s the U.S.experienced

Fragmentation within the executive branch of government is an obstacle to developing economic policy.Which of these cabinet-level departments does not have responsibility for economic policy?

The discount rate is the rate of interest charged by the feds on loans to banks.It is used as a tool by the feds to:

One way to stimulate growth in the economy is to

Keynes argues that government deficit spending

The value of American currency is dependent on the reserves of gold held by the U.S.Treasury Department.

Budget deficits reappeared in 2002 as a result of a number of factors.Those factors include all but

Which of the following U.S.presidents LEFT office with a budget surplus?

What was the purpose of TARP and has it been successful?

The Balanced Budget Act of 1997 and the performance of the economy in the 1990s produced the result that the federal budget deficit in the late 1990s

Which of the following is NOT a cause of inflation?

Tax reductions in the form of tax incentives can encourage corporations to

The Federal Reserve Board oversees the operations of banks that participate in the Federal Reserve System.It has the power to do the following except:

_____________ is the rise in price of goods and services,even though the actual value of those goods and services does not increase.

Public Policy: An Introduction

Contexts of Public Policy

The Economy: Changing Government-Business Relationships

Energy and Environmental Policies: Policy Instability

Crime and Criminal Justice: Dilemmas of Social Control

Poverty and Social Welfare Policy

Health Care: Transformation or Continued Crisis?

Education: Conflict in Policy Direction

Legal and Social Equality: The Struggle against Oppression and Bigotry

Immigration Policy: The Barely Open Door

Foreign and Defense Policy: Security and Interests in a Dangerous World

Private Morality and Public Policy: Moral Values, the Constitution, and the Open Society

Filters