Question 1

Business and labor are often at odds with each other.Each has a stake in getting the government to regulate the other.In what ways has government regulated business and labor?

Accepted Answer

A strong answer should cover several dif

Question 2

The federal budget process involves decisions by all of the following EXCEPT ______.

Accepted Answer

A)  the Federal Reserve Board of Governors 
B)  the federal executive branch agencies 
C)  the Office of Management and Budget 
D)  the congressional budget committees 
E)  the president 
A)  the Federal Reserve Board of Governors 
B)  the federal executive branch agencies 
C)  the Office of Management and Budget 
D)  the congressional budget committees 
E)  the president

Question 3

Deregulation is the imposition of trade barriers,especially tariffs,to make trading conditions favorable to domestic producers.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements best describes John Maynard Keynes's view regarding the economy?

Accepted Answer

A)  The best way to emerge from a depression is for government to spend less money. 
B)  A balanced budget is not essential to promote economic growth. 
C)  When a recession occurs, government must raise taxes to pull the country out of the recession. 
D)  Deficits always keep economic growth from occurring. 
E)  The government should have no role in regulating the economy. 
A)  The best way to emerge from a depression is for government to spend less money. 
B)  A balanced budget is not essential to promote economic growth. 
C)  When a recession occurs, government must raise taxes to pull the country out of the recession. 
D)  Deficits always keep economic growth from occurring. 
E)  The government should have no role in regulating the economy.

Question 5

What are the two broad types of economic policy?

Accepted Answer

Fiscal pol

Question 6

The Troubled Assets Relief Program (TARP)in October 2008 was passed to ______.

Accepted Answer

A)  bail out the auto industry 
B)  bail out the credit card industry 
C)  bail out financial institutions deemed "too big to fail" 
D)  bail out the oil companies 
E)  none of the above 
A)  bail out the auto industry 
B)  bail out the credit card industry 
C)  bail out financial institutions deemed "too big to fail" 
D)  bail out the oil companies 
E)  none of the above

Question 7

In 1998,the federal budget ______.

Accepted Answer

A)  had the highest debt in American history 
B)  was balanced and began to run a surplus 
C)  comprised major tax cuts for the wealthy 
D)  was dominated by middle-class tax cuts 
E)  all of the above 
A)  had the highest debt in American history 
B)  was balanced and began to run a surplus 
C)  comprised major tax cuts for the wealthy 
D)  was dominated by middle-class tax cuts 
E)  all of the above

Question 8

Explain the laws of supply and demand.

Accepted Answer

The law of demand tells us that people w

Question 9

According to the authors of the textbook,the economic crisis that began in 2008 was caused by ______.

Accepted Answer

A)  consumers being unwilling to borrow and spend 
B)  banks making too many risky loans and consumers going into too much debt with no means to repay it 
C)  the government borrowing too much money 
D)  the failure of foreign economies, leading to the collapse of the American economy 
E)  rising gas prices 
A)  consumers being unwilling to borrow and spend 
B)  banks making too many risky loans and consumers going into too much debt with no means to repay it 
C)  the government borrowing too much money 
D)  the failure of foreign economies, leading to the collapse of the American economy 
E)  rising gas prices

Question 10

Keynesian economic policies are associated with ______.

Accepted Answer

A)  monetary policy 
B)  balancing the federal budget 
C)  fiscal policy 
D)  supply-side economics 
E)  manipulating interest rates to influence the economy 
A)  monetary policy 
B)  balancing the federal budget 
C)  fiscal policy 
D)  supply-side economics 
E)  manipulating interest rates to influence the economy

Question 11

The laws of supply and demand state that ______.

Accepted Answer

A)  consumers buy more at low prices, and producers produce more at high prices 
B)  producers produce more at low prices, and consumers buy more at low prices 
C)  the greater the supply, the greater the demand 
D)  the lower the supply, the greater the demand 
E)  people demand what they need, but producers supply what costs the least to produce 
A)  consumers buy more at low prices, and producers produce more at high prices 
B)  producers produce more at low prices, and consumers buy more at low prices 
C)  the greater the supply, the greater the demand 
D)  the lower the supply, the greater the demand 
E)  people demand what they need, but producers supply what costs the least to produce

Question 12

______ control(s)monetary policy.

Accepted Answer

A)  Congress 
B)  Governors 
C)  The New York Stock Exchange Board 
D)  The Federal Reserve Board of Governors 
E)  The president 
A)  Congress 
B)  Governors 
C)  The New York Stock Exchange Board 
D)  The Federal Reserve Board of Governors 
E)  The president

Question 13

______ control(s)monetary policy.

Accepted Answer

The Federa

Question 14

A tax system in which all people pay the same percentage of their income is a(n)______ tax.

Accepted Answer

A)  flat 
B)  excise 
C)  consumption 
D)  capital gains 
E)  regressive 
A)  flat 
B)  excise 
C)  consumption 
D)  capital gains 
E)  regressive

Question 15

After the Great Depression of the 1930s,government policymakers ______.

Accepted Answer

A)  enacted a system of tariffs and tax incentives to ensure a balance of trade with the world 
B)  gave the Federal Reserve the power to control interest rates 
C)  believed in a new, expanded role for government to ensure steady growth in the economy 
D)  formed a coalition with business and labor unions to cooperate in solving economic crises 
E)  tied tax policy to other economic policies 
A)  enacted a system of tariffs and tax incentives to ensure a balance of trade with the world 
B)  gave the Federal Reserve the power to control interest rates 
C)  believed in a new, expanded role for government to ensure steady growth in the economy 
D)  formed a coalition with business and labor unions to cooperate in solving economic crises 
E)  tied tax policy to other economic policies

Question 16

Which of the following statements is NOT true about economic indicators?

Accepted Answer

A)  Government spending accounts for about 50 percent of the GDP. 
B)  When measuring GDP, it is important to put all prices on the same scale. 
C)  The unemployment rate can be misleading because people who have given up looking for work are not included. 
D)  A growth rate of 3 percent of personal disposable income is considered healthy. 
E)  The number of homes and motor vehicle sales are good indicators of consumer demand. 
A)  Government spending accounts for about 50 percent of the GDP. 
B)  When measuring GDP, it is important to put all prices on the same scale. 
C)  The unemployment rate can be misleading because people who have given up looking for work are not included. 
D)  A growth rate of 3 percent of personal disposable income is considered healthy. 
E)  The number of homes and motor vehicle sales are good indicators of consumer demand.

Question 17

The Gramm-Rudman Act ______.

Accepted Answer

A)  called for automatic 10 percent cuts on existing programs if Congress couldn't move toward a balanced budget in a given year 
B)  established the House and Senate Budget Committees 
C)  established a flat tax 
D)  gave the Federal Reserve the power to control monetary policy 
E)  created the Office of Management and Budget 
A)  called for automatic 10 percent cuts on existing programs if Congress couldn't move toward a balanced budget in a given year 
B)  established the House and Senate Budget Committees 
C)  established a flat tax 
D)  gave the Federal Reserve the power to control monetary policy 
E)  created the Office of Management and Budget

Question 18

Democrats believe that a fair tax policy is one that ______,whereas Republicans believe that a fair tax policy is one that ______.

Accepted Answer

A)  allows those who make more money the freedom to keep it; eases the tax burden on lower-income groups 
B)  is regressive; is progressive 
C)  balances the federal budget; is based on Keynesian economic theory 
D)  eases the tax burden on lower income groups; allows those who make more money the freedom to keep it 
E)  requires that the size of the federal government be decreased; allows the size of the federal government to grow 
A)  allows those who make more money the freedom to keep it; eases the tax burden on lower-income groups 
B)  is regressive; is progressive 
C)  balances the federal budget; is based on Keynesian economic theory 
D)  eases the tax burden on lower income groups; allows those who make more money the freedom to keep it 
E)  requires that the size of the federal government be decreased; allows the size of the federal government to grow

Question 19

The major weakness of fiscal policy as a way of affecting the economy is that ______.

Accepted Answer

A)  it depends on consumer behavior 
B)  it depends on decisions made by foreign governments 
C)  it requires politicians to make redistributive taxing and spending decisions 
D)  it requires changes to be made in very narrow increments 
E)  there is no evidence that it works 
A)  it depends on consumer behavior 
B)  it depends on decisions made by foreign governments 
C)  it requires politicians to make redistributive taxing and spending decisions 
D)  it requires changes to be made in very narrow increments 
E)  there is no evidence that it works

Question 20

Which of the following statements is NOT true regarding the politics of monetary policy?

Accepted Answer

A)  Monetary policy is insulated from the turmoil of partisan politics. 
B)  The effects of monetary policy can be unpredictable. 
C)  When trying to hold back inflationary pressures, loose monetary policy is likely to be adopted. 
D)  The Federal Reserve sets interest rates. 
E)  Monetary policy can be created (or changed) faster than fiscal policy. 
A)  Monetary policy is insulated from the turmoil of partisan politics. 
B)  The effects of monetary policy can be unpredictable. 
C)  When trying to hold back inflationary pressures, loose monetary policy is likely to be adopted. 
D)  The Federal Reserve sets interest rates. 
E)  Monetary policy can be created (or changed) faster than fiscal policy.

Business and labor are often at odds with each other.Each has a stake in getting the government to regulate the other.In what ways has government regulated business and labor?

The federal budget process involves decisions by all of the following EXCEPT ______.

Deregulation is the imposition of trade barriers,especially tariffs,to make trading conditions favorable to domestic producers.

Which of the following statements best describes John Maynard Keynes's view regarding the economy?

What are the two broad types of economic policy?

The Troubled Assets Relief Program (TARP)in October 2008 was passed to ______.

In 1998,the federal budget ______.

Explain the laws of supply and demand.

According to the authors of the textbook,the economic crisis that began in 2008 was caused by ______.

Keynesian economic policies are associated with ______.

The laws of supply and demand state that ______.

______ control(s)monetary policy.

______ control(s)monetary policy.

A tax system in which all people pay the same percentage of their income is a(n)______ tax.

After the Great Depression of the 1930s,government policymakers ______.

Which of the following statements is NOT true about economic indicators?

The Gramm-Rudman Act ______.

Democrats believe that a fair tax policy is one that ,whereas Republicans believe that a fair tax policy is one that .

The major weakness of fiscal policy as a way of affecting the economy is that ______.

Which of the following statements is NOT true regarding the politics of monetary policy?

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

Business and labor are often at odds with each other.Each has a stake in getting the government to regulate the other.In what ways has government regulated business and labor?

The federal budget process involves decisions by all of the following EXCEPT ______.

Deregulation is the imposition of trade barriers,especially tariffs,to make trading conditions favorable to domestic producers.

Which of the following statements best describes John Maynard Keynes's view regarding the economy?

What are the two broad types of economic policy?

The Troubled Assets Relief Program (TARP)in October 2008 was passed to ______.

In 1998,the federal budget ______.

Explain the laws of supply and demand.

According to the authors of the textbook,the economic crisis that began in 2008 was caused by ______.

Keynesian economic policies are associated with ______.

The laws of supply and demand state that ______.

______ control(s)monetary policy.

______ control(s)monetary policy.

A tax system in which all people pay the same percentage of their income is a(n)______ tax.

After the Great Depression of the 1930s,government policymakers ______.

Which of the following statements is NOT true about economic indicators?

The Gramm-Rudman Act ______.

Democrats believe that a fair tax policy is one that ______,whereas Republicans believe that a fair tax policy is one that ______.

The major weakness of fiscal policy as a way of affecting the economy is that ______.

Which of the following statements is NOT true regarding the politics of monetary policy?

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

Democrats believe that a fair tax policy is one that ,whereas Republicans believe that a fair tax policy is one that .