Question 1

Which of the following would be an example of an entitlement program?

Accepted Answer

A)  Federal income tax 
B)  Federal student loans 
C)  Medicare 
D)  Medicaid 
E)  An IRA 
A)  Federal income tax 
B)  Federal student loans 
C)  Medicare 
D)  Medicaid 
E)  An IRA C

Question 2

Examine the federal budget deficit, why it occurred, and what measures should be taken to bring it down.

Accepted Answer

The federal budget deficit occurs when the government's expenditures exceed its revenues in a given fiscal year. This can happen for a variety of reasons, including increased spending on programs and services, decreased tax revenues, and economic downturns that reduce overall government income.

To bring down the federal budget deficit, several measures can be taken. One approach is to increase government revenues by raising taxes or closing tax loopholes. Another option is to reduce government spending by cutting unnecessary programs or finding more efficient ways to deliver services. Additionally, efforts to stimulate economic growth and increase overall tax revenues can help to shrink the deficit over time.

It's important to note that addressing the federal budget deficit requires a balanced approach that takes into account both revenue and spending. By carefully evaluating government programs and policies, and making strategic adjustments to both revenue and spending, it is possible to bring down the deficit and put the country on a more sustainable fiscal path.

Question 3

Money spent on annual military expenditures would be categorized as which type of spending?

Accepted Answer

A)  Progressive spending 
B)  Mandatory spending 
C)  Uncontrollable spending 
D)  Discretionary spending 
E)  Incremental spending 
A)  Progressive spending 
B)  Mandatory spending 
C)  Uncontrollable spending 
D)  Discretionary spending 
E)  Incremental spending D

Question 4

Which of the following statements best describes the status of the total federal tax burden on U.S. citizens since the 1950s?

Accepted Answer

A)  It increased slightly. 
B)  It increased dramatically. 
C)  It stayed about the same. 
D)  It decreased. 
E)  It is impossible to determine. 
A)  It increased slightly. 
B)  It increased dramatically. 
C)  It stayed about the same. 
D)  It decreased. 
E)  It is impossible to determine.

Question 5

A body that decided which programs would be funded would be fulfilling the role of which of the following?

Accepted Answer

A)  An appropriations committee 
B)  A central bank 
C)  A general accounting office 
D)  A budget signature authority 
E)  A financial review office 
A)  An appropriations committee 
B)  A central bank 
C)  A general accounting office 
D)  A budget signature authority 
E)  A financial review office

Question 6

Benefits to which every eligible person has a legal right and the government cannot deny are provided by which of the following programs?

Accepted Answer

A)  Retroactive policies 
B)  Discretionary spending 
C)  Controllable spending 
D)  Entitlements 
E)  Earmarks 
A)  Retroactive policies 
B)  Discretionary spending 
C)  Controllable spending 
D)  Entitlements 
E)  Earmarks

Question 7

What are the goals of the Federal Reserve Board, and what tools does it use to achieve them?

Accepted Answer

The goals of the Federal Reserve Board,

Question 8

Describe the factors that can affect spending policies and the ways these factors either increase or decrease budget outlays.

Accepted Answer

There are several factors that can affec

Question 9

If government cuts taxes to encourage people to spend more money in order to stimulate economic growth, what policy is it engaging in?

Accepted Answer

A)  Fiscal policy 
B)  Business cycling 
C)  Monetary policy 
D)  Keynesian policy 
E)  Subsidies 
A)  Fiscal policy 
B)  Business cycling 
C)  Monetary policy 
D)  Keynesian policy 
E)  Subsidies

Question 10

The Federal Reserve System was created to do which of the following?

Accepted Answer

A)  Designate certain governmental powers as reserved for the federal government 
B)  Provide a secondary military force in times of war 
C)  Pay off the national debt 
D)  Stabilize nationwide economic activity by controlling the amount of money in circulation 
E)  All of these are correct. 
A)  Designate certain governmental powers as reserved for the federal government 
B)  Provide a secondary military force in times of war 
C)  Pay off the national debt 
D)  Stabilize nationwide economic activity by controlling the amount of money in circulation 
E)  All of these are correct.

Question 11

A sales tax is an example of which type of tax?

Accepted Answer

A)  Progressive 
B)  Flat 
C)  Value added 
D)  Regressive 
E)  Excise 
A)  Progressive 
B)  Flat 
C)  Value added 
D)  Regressive 
E)  Excise

Question 12

Explain the concept of a federal budget outlay, and give an example of one.

Accepted Answer

A federal budget outlay refers to the am

Question 13

Monetary policies are largely determined by which of the following groups?

Accepted Answer

A)  Presidents 
B)  Federal Reserve Board 
C)  Congress 
D)  Congressional Budget Office 
E)  Treasury Department 
A)  Presidents 
B)  Federal Reserve Board 
C)  Congress 
D)  Congressional Budget Office 
E)  Treasury Department

Question 14

Which of the following is true of fiscal policy?

Accepted Answer

A)  It is popular with conservatives. 
B)  It is an approach to stabilize the economy through control of the money supply. 
C)  It is controlled by the Federal Reserve Bank. 
D)  It is an approach to stabilizing the economy through government spending and taxing. 
E)  It requires that, during economic slowdowns, the government tighten its belt on spending. 
A)  It is popular with conservatives. 
B)  It is an approach to stabilize the economy through control of the money supply. 
C)  It is controlled by the Federal Reserve Bank. 
D)  It is an approach to stabilizing the economy through government spending and taxing. 
E)  It requires that, during economic slowdowns, the government tighten its belt on spending.

Question 15

Discuss some of the reasons that America's system of taxation does not do more to promote economic equality.

Accepted Answer

There are several reasons why America's

Question 16

Which of the following best describes how tax rates would be distributed under a flat tax?

Accepted Answer

A)  The wealthy pay a lower tax. 
B)  The wealthy pay a higher tax. 
C)  The poor pay a lower tax. 
D)  The poor pay a higher tax. 
E)  Everyone pays at the same rate. 
A)  The wealthy pay a lower tax. 
B)  The wealthy pay a higher tax. 
C)  The poor pay a lower tax. 
D)  The poor pay a higher tax. 
E)  Everyone pays at the same rate.

Question 17

A tax where the rich pay proportionately higher taxes as a share of their income than the poor is also known as what type of tax?

Accepted Answer

A)  Progressive 
B)  Flat 
C)  Regressive 
D)  Payroll 
E)  Excise 
A)  Progressive 
B)  Flat 
C)  Regressive 
D)  Payroll 
E)  Excise

Question 18

Which of the following best describes the number of democratic countries that the United States has a higher tax burden than?

Accepted Answer

A)  Almost all 
B)  About three-fourths 
C)  About half 
D)  About one-fourth 
E)  Almost none 
A)  Almost all 
B)  About three-fourths 
C)  About half 
D)  About one-fourth 
E)  Almost none

Question 19

Explain what an entitlement program is. Describe two federal entitlement programs, their purpose, and their eligibility requirements.

Accepted Answer

An entitlement program is a government p

Question 20

What budgeting principle or process involves developing a budget by using last year's budget as the base and adding an amount to cover the increased costs of doing business (inflation) and any new programs?

Accepted Answer

A)  Zero-based budgeting 
B)  Incremental budgeting 
C)  The program planning budgeting system (PPBS) 
D)  Deficit budgeting 
E)  Cost analysis 
A)  Zero-based budgeting 
B)  Incremental budgeting 
C)  The program planning budgeting system (PPBS) 
D)  Deficit budgeting 
E)  Cost analysis

Which of the following would be an example of an entitlement program?

Examine the federal budget deficit, why it occurred, and what measures should be taken to bring it down.

Money spent on annual military expenditures would be categorized as which type of spending?

Which of the following statements best describes the status of the total federal tax burden on U.S. citizens since the 1950s?

A body that decided which programs would be funded would be fulfilling the role of which of the following?

Benefits to which every eligible person has a legal right and the government cannot deny are provided by which of the following programs?

What are the goals of the Federal Reserve Board, and what tools does it use to achieve them?

Describe the factors that can affect spending policies and the ways these factors either increase or decrease budget outlays.

If government cuts taxes to encourage people to spend more money in order to stimulate economic growth, what policy is it engaging in?

The Federal Reserve System was created to do which of the following?

A sales tax is an example of which type of tax?

Explain the concept of a federal budget outlay, and give an example of one.

Monetary policies are largely determined by which of the following groups?

Which of the following is true of fiscal policy?

Discuss some of the reasons that America's system of taxation does not do more to promote economic equality.

Which of the following best describes how tax rates would be distributed under a flat tax?

A tax where the rich pay proportionately higher taxes as a share of their income than the poor is also known as what type of tax?

Which of the following best describes the number of democratic countries that the United States has a higher tax burden than?

Explain what an entitlement program is. Describe two federal entitlement programs, their purpose, and their eligibility requirements.

What budgeting principle or process involves developing a budget by using last year's budget as the base and adding an amount to cover the increased costs of doing business (inflation) and any new programs?

Freedom, Order, or Equality

Majoritarian or Pluralist Democracy

The Constitution

Federalism

Public Opinion and Political Socialization

The Media

Participation and Voting

Political Parties

Nominations, Elections, and Campaigns

Interest Groups

Congress

The Presidency

The Bureaucracy

The Courts

Order and Civil Liberties

Equality and Civil Rights

Policymaking and Domestic Policy

Filters

Exam 17: Economic Policy

Which of the following would be an example of an entitlement program?

Examine the federal budget deficit, why it occurred, and what measures should be taken to bring it down.

Money spent on annual military expenditures would be categorized as which type of spending?

Which of the following statements best describes the status of the total federal tax burden on U.S. citizens since the 1950s?

A body that decided which programs would be funded would be fulfilling the role of which of the following?

Benefits to which every eligible person has a legal right and the government cannot deny are provided by which of the following programs?

What are the goals of the Federal Reserve Board, and what tools does it use to achieve them?

Describe the factors that can affect spending policies and the ways these factors either increase or decrease budget outlays.

If government cuts taxes to encourage people to spend more money in order to stimulate economic growth, what policy is it engaging in?

The Federal Reserve System was created to do which of the following?

A sales tax is an example of which type of tax?

Explain the concept of a federal budget outlay, and give an example of one.

Monetary policies are largely determined by which of the following groups?

Which of the following is true of fiscal policy?

Discuss some of the reasons that America's system of taxation does not do more to promote economic equality.

Which of the following best describes how tax rates would be distributed under a flat tax?

A tax where the rich pay proportionately higher taxes as a share of their income than the poor is also known as what type of tax?

Which of the following best describes the number of democratic countries that the United States has a higher tax burden than?

Explain what an entitlement program is. Describe two federal entitlement programs, their purpose, and their eligibility requirements.

What budgeting principle or process involves developing a budget by using last year's budget as the base and adding an amount to cover the increased costs of doing business (inflation) and any new programs?

Freedom, Order, or Equality

Majoritarian or Pluralist Democracy

The Constitution

Federalism

Public Opinion and Political Socialization

The Media

Participation and Voting

Political Parties

Nominations, Elections, and Campaigns

Interest Groups

Congress

The Presidency

The Bureaucracy

The Courts

Order and Civil Liberties

Equality and Civil Rights

Policymaking and Domestic Policy

Filters