Question 1

Which of the following statements is NOT true regarding trade policy?

Accepted Answer

A)  The U.S. trade deficit is at an all-time low because of free-trade policies. 
B)  Current U.S. trade policy leans more toward free trade than protectionism. 
C)  Labor supports protectionist trade policies. 
D)  Alexander Hamilton was a strong proponent of protectionist trade policies. 
E)  The WTO supports free-trade policies. 
A)  The U.S. trade deficit is at an all-time low because of free-trade policies. 
B)  Current U.S. trade policy leans more toward free trade than protectionism. 
C)  Labor supports protectionist trade policies. 
D)  Alexander Hamilton was a strong proponent of protectionist trade policies. 
E)  The WTO supports free-trade policies. A

Question 2

A major weakness of monetary policy as a way to affect the economy is that ______.

Accepted Answer

A)  it requires unpopular spending and taxing decisions 
B)  it is subject to pressure from business and labor interests 
C)  it is hard to control because small changes can have large effects 
D)  it tends to lead to runaway deficits 
E)  there is no evidence that it works 
A)  it requires unpopular spending and taxing decisions 
B)  it is subject to pressure from business and labor interests 
C)  it is hard to control because small changes can have large effects 
D)  it tends to lead to runaway deficits 
E)  there is no evidence that it works C

Question 3

The American Recovery and Reinvestment Act of 2009 (commonly known as the stimulus bill)added nearly $900 billion of spending on tax relief for individuals and businesses,extensions of unemployment insurance,infrastructure development,and various other projects.It was designed in the ______ economic tradition.

Accepted Answer

A)  Keynesian 
B)  Adam Smith 
C)  John Locke 
D)  James Madison 
E)  Ronald Reagan 
A)  Keynesian 
B)  Adam Smith 
C)  John Locke 
D)  James Madison 
E)  Ronald Reagan A

Question 4

The cost of borrowing money calculated as a percentage of the amount borrowed is a(n)______ rate.

Accepted Answer

A)  fiscal 
B)  inflationary 
C)  interest 
D)  deficit 
E)  loan 
A)  fiscal 
B)  inflationary 
C)  interest 
D)  deficit 
E)  loan

Question 5

The federal income tax rate for those making over $357,000 is 35 percent,which means that a family whose taxable income is over $357,000 will pay ______.

Accepted Answer

A)  35 percent of their taxable income in taxes 
B)  35 percent on everything they make above the tax bracket beneath them 
C)  more than 35 percent of their taxable income in taxes 
D)  more than 35 percent of their gross income in taxes 
E)  35 percent of their gross income in taxes 
A)  35 percent of their taxable income in taxes 
B)  35 percent on everything they make above the tax bracket beneath them 
C)  more than 35 percent of their taxable income in taxes 
D)  more than 35 percent of their gross income in taxes 
E)  35 percent of their gross income in taxes

Question 6

The effect of supply-side economic policies was to ______.

Accepted Answer

A)  cut federal spending 
B)  create a recession 
C)  increase federal deficits 
D)  create high rates of inflation 
E)  lower interest rates 
A)  cut federal spending 
B)  create a recession 
C)  increase federal deficits 
D)  create high rates of inflation 
E)  lower interest rates

Question 7

Monetary policy is the product of a closely guarded elite policymaking process.

Accepted Answer

A) True 
 B)False

Question 8

According to the text,the main reason for regulating business is to ______.

Accepted Answer

A)  reduce destructive competition 
B)  control corrupt business practices 
C)  prevent or eliminate monopolies 
D)  reduce union influence 
E)  provide worker safety 
A)  reduce destructive competition 
B)  control corrupt business practices 
C)  prevent or eliminate monopolies 
D)  reduce union influence 
E)  provide worker safety

Question 9

The heart of Keynesianism is that the government should ______.

Accepted Answer

A)  run deficits during recessions and surpluses when the economy is doing well 
B)  run surpluses during recessions and deficits when the economy is doing well 
C)  run surpluses all the time 
D)  run deficits all the time 
E)  control the economy by manipulating interest rates 
A)  run deficits during recessions and surpluses when the economy is doing well 
B)  run surpluses during recessions and deficits when the economy is doing well 
C)  run surpluses all the time 
D)  run deficits all the time 
E)  control the economy by manipulating interest rates

Question 10

The Reagan administration's idea that tax cuts would ultimately generate more,not less,government revenue by allowing for increased investments and productivity is known as supply-side economics.

Accepted Answer

A) True 
 B)False

Question 11

What did trade policy look like at the beginning of the country's history? How has the government's trade policy changed?

Accepted Answer

Students should highlight Alexander Hami

Question 12

The difference between the value of the goods a country imports and what it exports is known as a trade ______.

Accepted Answer

A)  surplus 
B)  debt 
C)  rate 
D)  index 
E)  deficit 
A)  surplus 
B)  debt 
C)  rate 
D)  index 
E)  deficit

Question 13

What reforms have been proposed to change the current tax code? What are the pros and cons of each reform? Which reform do you think is best? Or do you believe that the tax code does not need to be changed? Why?

Accepted Answer

Students should discuss reforms such as

Question 14

What is one reason that businesses support the regulation of business?

Accepted Answer

A)  Regulation can eliminate some of the red tape that bogs down businesses. 
B)  Regulation will increase production because equipment will be safer. 
C)  Regulation will help eliminate business corruption. 
D)  Regulation leads to lower prices, which increases demand and profits. 
E)  Regulation can keep competitors from becoming too powerful. 
A)  Regulation can eliminate some of the red tape that bogs down businesses. 
B)  Regulation will increase production because equipment will be safer. 
C)  Regulation will help eliminate business corruption. 
D)  Regulation leads to lower prices, which increases demand and profits. 
E)  Regulation can keep competitors from becoming too powerful.

Question 15

The Taft-Hartley Act ______.

Accepted Answer

A)  caused government to enter a recession in the early 1990s 
B)  was responsible for changing the direction of U.S. trade policy from protectionism to free trade 
C)  was a major influence in helping Congress pass balanced budgets 
D)  significantly restricted the power of labor unions to engage in collective bargaining 
E)  kept monetary policy from being dominated by politics 
A)  caused government to enter a recession in the early 1990s 
B)  was responsible for changing the direction of U.S. trade policy from protectionism to free trade 
C)  was a major influence in helping Congress pass balanced budgets 
D)  significantly restricted the power of labor unions to engage in collective bargaining 
E)  kept monetary policy from being dominated by politics

Question 16

Laissez-faire is a theory that refers to ______.

Accepted Answer

A)  the belief that protectionist trade policies lead to greater unemployment 
B)  the role of big business in controlling the market for the good of all of society 
C)  government support for the market to ensure economic prosperity 
D)  the "invisible hand" of the marketplace creating positive social and economic outcomes 
E)  the importance of each individual working for his or her own economic prosperity 
A)  the belief that protectionist trade policies lead to greater unemployment 
B)  the role of big business in controlling the market for the good of all of society 
C)  government support for the market to ensure economic prosperity 
D)  the "invisible hand" of the marketplace creating positive social and economic outcomes 
E)  the importance of each individual working for his or her own economic prosperity

Question 17

Which of the following is NOT a criticism of regulations on business mentioned in the text?

Accepted Answer

A)  They limit consumer choice. 
B)  They make prices rise. 
C)  They increase the cost of production. 
D)  They enlarge the bureaucracy. 
E)  They generally fall most heavily on the smallest businesses. 
A)  They limit consumer choice. 
B)  They make prices rise. 
C)  They increase the cost of production. 
D)  They enlarge the bureaucracy. 
E)  They generally fall most heavily on the smallest businesses.

Question 18

A tax that,even if at a fixed rate,takes a higher proportion of lower incomes is known as a ______ tax.

Accepted Answer

The answer of A tax that,even if at a fixed...

Question 19

The total market value of all goods and services produced by everyone in a particular country during a given year is the ______.

Accepted Answer

A)  gross national product 
B)  overall consumption index 
C)  overall production index 
D)  gross domestic product 
E)  gross consumption product 
A)  gross national product 
B)  overall consumption index 
C)  overall production index 
D)  gross domestic product 
E)  gross consumption product

Question 20

A tax levied on returns from capital investments,such as profits from the sale of real estate,is a ______ tax.

Accepted Answer

A)  capital gains 
B)  excise 
C)  consumption 
D)  value-added 
E)  progressive 
A)  capital gains 
B)  excise 
C)  consumption 
D)  value-added 
E)  progressive

Which of the following statements is NOT true regarding trade policy?

A major weakness of monetary policy as a way to affect the economy is that ______.

The cost of borrowing money calculated as a percentage of the amount borrowed is a(n)______ rate.

The federal income tax rate for those making over $357,000 is 35 percent,which means that a family whose taxable income is over $357,000 will pay ______.

The effect of supply-side economic policies was to ______.

Monetary policy is the product of a closely guarded elite policymaking process.

According to the text,the main reason for regulating business is to ______.

The heart of Keynesianism is that the government should ______.

The Reagan administration's idea that tax cuts would ultimately generate more,not less,government revenue by allowing for increased investments and productivity is known as supply-side economics.

What did trade policy look like at the beginning of the country's history? How has the government's trade policy changed?

The difference between the value of the goods a country imports and what it exports is known as a trade ______.

What reforms have been proposed to change the current tax code? What are the pros and cons of each reform? Which reform do you think is best? Or do you believe that the tax code does not need to be changed? Why?

What is one reason that businesses support the regulation of business?

The Taft-Hartley Act ______.

Laissez-faire is a theory that refers to ______.

Which of the following is NOT a criticism of regulations on business mentioned in the text?

A tax that,even if at a fixed rate,takes a higher proportion of lower incomes is known as a ______ tax.

The total market value of all goods and services produced by everyone in a particular country during a given year is the ______.

A tax levied on returns from capital investments,such as profits from the sale of real estate,is a ______ tax.

Politics: Who Gets What, and How?

American Citizens and Political Culture

Politics of the American Founding

Federalism and the U.S.Constitution

Fundamental American Liberties

The Struggle for Equal Rights

Congress

The Presidency

The Bureaucracy

The American Legal System and the Courts

Public Opinion

Political Parties

Interest Groups

Voting, Campaigns, and Elections

The Media

Social and Environmental Policy

Foreign Policy

Filters

Exam 17: Economic Policy

Which of the following statements is NOT true regarding trade policy?

A major weakness of monetary policy as a way to affect the economy is that ______.

The cost of borrowing money calculated as a percentage of the amount borrowed is a(n)______ rate.

The federal income tax rate for those making over $357,000 is 35 percent,which means that a family whose taxable income is over $357,000 will pay ______.

The effect of supply-side economic policies was to ______.

Monetary policy is the product of a closely guarded elite policymaking process.

According to the text,the main reason for regulating business is to ______.

The heart of Keynesianism is that the government should ______.

The Reagan administration's idea that tax cuts would ultimately generate more,not less,government revenue by allowing for increased investments and productivity is known as supply-side economics.

What did trade policy look like at the beginning of the country's history? How has the government's trade policy changed?

The difference between the value of the goods a country imports and what it exports is known as a trade ______.

What reforms have been proposed to change the current tax code? What are the pros and cons of each reform? Which reform do you think is best? Or do you believe that the tax code does not need to be changed? Why?

What is one reason that businesses support the regulation of business?

The Taft-Hartley Act ______.

Laissez-faire is a theory that refers to ______.

Which of the following is NOT a criticism of regulations on business mentioned in the text?

A tax that,even if at a fixed rate,takes a higher proportion of lower incomes is known as a ______ tax.

The total market value of all goods and services produced by everyone in a particular country during a given year is the ______.

A tax levied on returns from capital investments,such as profits from the sale of real estate,is a ______ tax.

Politics: Who Gets What, and How?

American Citizens and Political Culture

Politics of the American Founding

Federalism and the U.S.Constitution

Fundamental American Liberties

The Struggle for Equal Rights

Congress

The Presidency

The Bureaucracy

The American Legal System and the Courts

Public Opinion

Political Parties

Interest Groups

Voting, Campaigns, and Elections

The Media

Social and Environmental Policy

Foreign Policy

Filters