Question 1

The process of automatic spending cuts is called

Accepted Answer

A) Deficit Control 
B) Gramm-Rudman Act 
C) Sequestration 
D) Balancing the Budget 
A) Deficit Control 
B) Gramm-Rudman Act 
C) Sequestration 
D) Balancing the Budget

Question 2

President Reagan administration's supply-side policies resulted in a 5 percent and 10 percent cuts in personal income taxes.

Accepted Answer

A) True 
 B)False

Question 3

Fragmentation of responsibility for economic policy exists at the federal level.

Accepted Answer

A) True 
 B)False

Question 4

Policy which encompasses government taxing and spending is:

Accepted Answer

A) fiscal policy 
B) monetary policy 
C) antitrust policy 
D) Federal Reserve Board policy 
A) fiscal policy 
B) monetary policy 
C) antitrust policy 
D) Federal Reserve Board policy

Question 5

In macroeconomic policy,which of the following is/are highly influential?

Accepted Answer

A) President 
B) Congress 
C) Federal Reserve Board 
D) all of the above 
E) (
A)  and (
B)  only 
A) President 
B) Congress 
C) Federal Reserve Board 
D) all of the above 
E) (
A)  and (
B)  only

Question 6

Troubled Asset Relief Program (TARP)was created in part in response to the practice of lending institutions having allowed individuals to borrow money for homes well beyond their ability to repay which resulted in an escalation of mortgage defaults.

Accepted Answer

A) True 
 B)False

Question 7

The terms "tax reform" and "tax cuts" refer to the same thing.

Accepted Answer

A) True 
 B)False

Question 8

Progressives tend to favor limited governmental use of monetary and fiscal policies while conservatives favor a managed economy.

Accepted Answer

A) True 
 B)False

Question 9

The shift from budget deficits to budget surpluses in 1998 was due to several factors.Which of the following was NOT a factor?

Accepted Answer

A) A strengthened economy and low inflation rate reduced the rate of increase in entitlement programs 
B) The private sector experienced significant economic growth 
C) Defense spending on the Persian Gulf War 
D) The booming stock market in the 1990s meant higher state and federal revenues from capital gains 
A) A strengthened economy and low inflation rate reduced the rate of increase in entitlement programs 
B) The private sector experienced significant economic growth 
C) Defense spending on the Persian Gulf War 
D) The booming stock market in the 1990s meant higher state and federal revenues from capital gains

Question 10

Who most influences the money supply?

Accepted Answer

A) President 
B) Congress 
C) Federal Reserve Board 
A) President 
B) Congress 
C) Federal Reserve Board

Question 11

During the 1980s the national debt

Accepted Answer

A) rose substantially 
B) rose steadily as a percentage of GDP 
C) was fueled by a steadily falling budget deficit 
D) (a) and (b) only 
A) rose substantially 
B) rose steadily as a percentage of GDP 
C) was fueled by a steadily falling budget deficit 
D) (a) and (b) only

Question 12

The use of monetary policy and fiscal policy are the federal government's two primary instruments of accomplishing macroeconomic goals and achieving economic stability.

Accepted Answer

A) True 
 B)False

Question 13

A basic recommendation of "supply-side economics" is:

Accepted Answer

A) decrease the budget deficit to raise interest rates 
B) cut taxes to increase investment and employment 
C) government should focus its spending on the military rather than on income support 
D) an increase in supply will cause a decrease in demand 
A) decrease the budget deficit to raise interest rates 
B) cut taxes to increase investment and employment 
C) government should focus its spending on the military rather than on income support 
D) an increase in supply will cause a decrease in demand

Question 14

Budget deficits after the passage of the Gramm-Rudman deficit control law:

Accepted Answer

A) increased 
B) decreased 
C) remained constant 
D) disappeared 
A) increased 
B) decreased 
C) remained constant 
D) disappeared

Question 15

Supply-side tax cuts focus on upper-income levels,especially corporate profits and capital gains because

Accepted Answer

A) they are the most likely to make political contributions 
B) they are the most likely to create jobs 
C) they are the most likely sources of significant investment 
D) they are the majority of population 
A) they are the most likely to make political contributions 
B) they are the most likely to create jobs 
C) they are the most likely sources of significant investment 
D) they are the majority of population

Question 16

Borrowing is now the largest source of income for the federal government.

Accepted Answer

A) True 
 B)False

Question 17

Efficiency was a significant goal of the 1986 Tax Reform Act.It sought to diminish the importance of tax laws in business decision making.

Accepted Answer

A) True 
 B)False

Question 18

A primary goal of the Fed is to regulate the economy through control over the money supply.

Accepted Answer

A) True 
 B)False

Question 19

The Balanced Budget and Emergency Deficit Control Act of 1985,known as the Gramm-Rudman included two significant changes in the federal budget process.

Accepted Answer

A) balanced budget requirement and national debt reduction 
B) across the board budget cuts and agreement between Congress and the president 
C) targeted deficit levels requirements and triggered automatic spending cuts 
D) defense and domestic spending cuts 
A) balanced budget requirement and national debt reduction 
B) across the board budget cuts and agreement between Congress and the president 
C) targeted deficit levels requirements and triggered automatic spending cuts 
D) defense and domestic spending cuts

Question 20

Fiscal policy includes:

Accepted Answer

A) open market operations 
B) control of the money supply 
C) changes in the federal deficit 
D) control of the reserve requirement 
E) regulation of interest rates 
A) open market operations 
B) control of the money supply 
C) changes in the federal deficit 
D) control of the reserve requirement 
E) regulation of interest rates

The process of automatic spending cuts is called

President Reagan administration's supply-side policies resulted in a 5 percent and 10 percent cuts in personal income taxes.

Fragmentation of responsibility for economic policy exists at the federal level.

Policy which encompasses government taxing and spending is:

In macroeconomic policy,which of the following is/are highly influential?

Troubled Asset Relief Program (TARP)was created in part in response to the practice of lending institutions having allowed individuals to borrow money for homes well beyond their ability to repay which resulted in an escalation of mortgage defaults.

The terms "tax reform" and "tax cuts" refer to the same thing.

Progressives tend to favor limited governmental use of monetary and fiscal policies while conservatives favor a managed economy.

The shift from budget deficits to budget surpluses in 1998 was due to several factors.Which of the following was NOT a factor?

Who most influences the money supply?

During the 1980s the national debt

The use of monetary policy and fiscal policy are the federal government's two primary instruments of accomplishing macroeconomic goals and achieving economic stability.

A basic recommendation of "supply-side economics" is:

Budget deficits after the passage of the Gramm-Rudman deficit control law:

Supply-side tax cuts focus on upper-income levels,especially corporate profits and capital gains because

Borrowing is now the largest source of income for the federal government.

Efficiency was a significant goal of the 1986 Tax Reform Act.It sought to diminish the importance of tax laws in business decision making.

A primary goal of the Fed is to regulate the economy through control over the money supply.

The Balanced Budget and Emergency Deficit Control Act of 1985,known as the Gramm-Rudman included two significant changes in the federal budget process.

Fiscal policy includes:

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

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

The process of automatic spending cuts is called

President Reagan administration's supply-side policies resulted in a 5 percent and 10 percent cuts in personal income taxes.

Fragmentation of responsibility for economic policy exists at the federal level.

Policy which encompasses government taxing and spending is:

In macroeconomic policy,which of the following is/are highly influential?

Troubled Asset Relief Program (TARP)was created in part in response to the practice of lending institutions having allowed individuals to borrow money for homes well beyond their ability to repay which resulted in an escalation of mortgage defaults.

The terms "tax reform" and "tax cuts" refer to the same thing.

Progressives tend to favor limited governmental use of monetary and fiscal policies while conservatives favor a managed economy.

The shift from budget deficits to budget surpluses in 1998 was due to several factors.Which of the following was NOT a factor?

Who most influences the money supply?

During the 1980s the national debt

The use of monetary policy and fiscal policy are the federal government's two primary instruments of accomplishing macroeconomic goals and achieving economic stability.

A basic recommendation of "supply-side economics" is:

Budget deficits after the passage of the Gramm-Rudman deficit control law:

Supply-side tax cuts focus on upper-income levels,especially corporate profits and capital gains because

Borrowing is now the largest source of income for the federal government.

Efficiency was a significant goal of the 1986 Tax Reform Act.It sought to diminish the importance of tax laws in business decision making.

A primary goal of the Fed is to regulate the economy through control over the money supply.

The Balanced Budget and Emergency Deficit Control Act of 1985,known as the Gramm-Rudman included two significant changes in the federal budget process.

Fiscal policy includes:

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