Question 1

A tax allocated based on a person's ability to pay, rather than, for example, requiring everyone to pay an equal percentage of their income, is known as what type of tax?

Accepted Answer

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

Question 2

Compare and contrast the flat tax and the progressive tax, and describe which tax was more closely related to President Reagan's policies.

Accepted Answer

The flat tax and the progressive tax are

Question 3

Discuss how federal government bureaucracies typically determine how much to ask for in budget allocations. Explain what factors keep most such budgets from going down.

Accepted Answer

Federal government bureaucracies typical

Question 4

Because everyone pays the same rate of sales tax on purchases, and less wealthy people spend most of their income buying things, as opposed to saving and investing, what kind of impact does the sales tax have?

Accepted Answer

A)  Pluralist 
B)  Regressive 
C)  Discretionary 
D)  Positive 
E)  Progressive 
A)  Pluralist 
B)  Regressive 
C)  Discretionary 
D)  Positive 
E)  Progressive

Question 5

Which tax is currently the single greatest source of federal revenues, comprising almost half of total federal tax revenue?

Accepted Answer

A)  Tariff 
B)  Income tax 
C)  Social Security tax 
D)  Corporate income tax 
E)  Excise tax 
A)  Tariff 
B)  Income tax 
C)  Social Security tax 
D)  Corporate income tax 
E)  Excise tax

Question 6

Which of the following is an important governmental justification for progressive taxation?

Accepted Answer

A)  Assisting small businesses 
B)  Promoting equality 
C)  Giving corporations more incentive to hire new employees 
D)  Allowing people to keep more of the income that they earn 
E)  Enhancing national security by enhancing federal revenues 
A)  Assisting small businesses 
B)  Promoting equality 
C)  Giving corporations more incentive to hire new employees 
D)  Allowing people to keep more of the income that they earn 
E)  Enhancing national security by enhancing federal revenues

Question 7

Explain the role of the Federal Reserve System in the United States.

Accepted Answer

The Federal Reserve System, often referr

Question 8

Which of the following best describes how the Social Security system is funded?

Accepted Answer

A)  Fees paid to the Federal Deposit Insurance Corporation (FDI
C)  
B)  A pay-as-you-go system where those currently working support those who are retired 
C)  Funded solely by employees' contributions through wages 
D)  Funded by a progressive tax on income 
E)  Essentially, a private pension fund in which employees decide how much to contribute 
A)  Fees paid to the Federal Deposit Insurance Corporation (FDI
C)  
B)  A pay-as-you-go system where those currently working support those who are retired 
C)  Funded solely by employees' contributions through wages 
D)  Funded by a progressive tax on income 
E)  Essentially, a private pension fund in which employees decide how much to contribute

Question 9

On what basis does the text suggest that no one in Congress is responsible for the budget as a whole?

Accepted Answer

A)  One group in each house plans for revenues, and many other groups plan for spending. 
B)  The executive branch dominates the process at every point. 
C)  Committee chairpersons make the critical decisions in secret. 
D)  The election cycle creates too much turnover in membership. 
E)  Informal norms prevent members from revealing the sources of key decisions. 
A)  One group in each house plans for revenues, and many other groups plan for spending. 
B)  The executive branch dominates the process at every point. 
C)  Committee chairpersons make the critical decisions in secret. 
D)  The election cycle creates too much turnover in membership. 
E)  Informal norms prevent members from revealing the sources of key decisions.

Question 10

Monetary policy includes which of the following?

Accepted Answer

A)  Using changes in the amount of money in circulation to alter national economic variables 
B)  Using changes in the size of the federal budget deficit to alter national economic variables 
C)  Regulating tax rates to ensure controlled growth and low inflation 
D)  All economic policies of the president and Congress 
E)  Linking the consumer price index and the gross national product 
A)  Using changes in the amount of money in circulation to alter national economic variables 
B)  Using changes in the size of the federal budget deficit to alter national economic variables 
C)  Regulating tax rates to ensure controlled growth and low inflation 
D)  All economic policies of the president and Congress 
E)  Linking the consumer price index and the gross national product

Question 11

For what reason was the U.S. income tax first introduced?

Accepted Answer

A)  To help finance the Civil War 
B)  To respond to the dramatic drop in federal revenues as a result of the Great Depression 
C)  To finance U.S. participation in World War I 
D)  To reduce the ability of a few industrialists to create economic disadvantage for the majority of citizens 
E)  To enable the U.S. government to grow in response to competition from foreign countries 
A)  To help finance the Civil War 
B)  To respond to the dramatic drop in federal revenues as a result of the Great Depression 
C)  To finance U.S. participation in World War I 
D)  To reduce the ability of a few industrialists to create economic disadvantage for the majority of citizens 
E)  To enable the U.S. government to grow in response to competition from foreign countries

Question 12

Discuss the creation of the income tax in the United States, and explain why the Sixteenth Amendment was necessary.

Accepted Answer

The income tax in the United States was

Question 13

Explain the difference between budget authority and budget outlays.

Accepted Answer

Budget authority refers to the legal aut

Question 14

Discuss monetary policy. Explain how it compares to economic policy.

Accepted Answer

Monetary policy refers to the actions ta

Question 15

Explain what makes a tax regressive, and provide an example of one.

Accepted Answer

A tax is considered regressive when the

Question 16

Controlling U.S. monetary policy is the responsibility of which of the following?

Accepted Answer

A)  Presidency 
B)  Federal Deposit Insurance Corporation 
C)  Federal Reserve Board 
D)  International Monetary Fund 
E)  Treasury Department 
A)  Presidency 
B)  Federal Deposit Insurance Corporation 
C)  Federal Reserve Board 
D)  International Monetary Fund 
E)  Treasury Department

Question 17

When the U.S. government adjusts the amount of money in circulation in order to alter credit markets and employment, which of the following is the government relying on to influence the economy?

Accepted Answer

A)  Domestic policy 
B)  Fiscal policy 
C)  Monetary policy 
D)  Regressive tax policy 
E)  Progressive tax policy 
A)  Domestic policy 
B)  Fiscal policy 
C)  Monetary policy 
D)  Regressive tax policy 
E)  Progressive tax policy

Question 18

Which of the following are government expenditures that exceed receipts?

Accepted Answer

A)  Upturns 
B)  Inflation 
C)  Surpluses 
D)  Deficits 
E)  Rebates 
A)  Upturns 
B)  Inflation 
C)  Surpluses 
D)  Deficits 
E)  Rebates

Question 19

Much of the federal budget goes toward the cost of Social Security, yet congressional efforts to change this are hampered because spending for this program is considered to be which of the following?

Accepted Answer

A)  Infallible 
B)  Partisan 
C)  Uncontrollable 
D)  Unnecessary 
E)  Majoritarian 
A)  Infallible 
B)  Partisan 
C)  Uncontrollable 
D)  Unnecessary 
E)  Majoritarian

Question 20

Describe President George W. Bush's election tax pledges and what happened to budget deficits during his presidency.

Accepted Answer

President George W. Bush made several ta

A tax allocated based on a person's ability to pay, rather than, for example, requiring everyone to pay an equal percentage of their income, is known as what type of tax?

Compare and contrast the flat tax and the progressive tax, and describe which tax was more closely related to President Reagan's policies.

Discuss how federal government bureaucracies typically determine how much to ask for in budget allocations. Explain what factors keep most such budgets from going down.

Because everyone pays the same rate of sales tax on purchases, and less wealthy people spend most of their income buying things, as opposed to saving and investing, what kind of impact does the sales tax have?

Which tax is currently the single greatest source of federal revenues, comprising almost half of total federal tax revenue?

Which of the following is an important governmental justification for progressive taxation?

Explain the role of the Federal Reserve System in the United States.

Which of the following best describes how the Social Security system is funded?

On what basis does the text suggest that no one in Congress is responsible for the budget as a whole?

Monetary policy includes which of the following?

For what reason was the U.S. income tax first introduced?

Discuss the creation of the income tax in the United States, and explain why the Sixteenth Amendment was necessary.

Explain the difference between budget authority and budget outlays.

Discuss monetary policy. Explain how it compares to economic policy.

Explain what makes a tax regressive, and provide an example of one.

Controlling U.S. monetary policy is the responsibility of which of the following?

When the U.S. government adjusts the amount of money in circulation in order to alter credit markets and employment, which of the following is the government relying on to influence the economy?

Which of the following are government expenditures that exceed receipts?

Much of the federal budget goes toward the cost of Social Security, yet congressional efforts to change this are hampered because spending for this program is considered to be which of the following?

Describe President George W. Bush's election tax pledges and what happened to budget deficits during his presidency.

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

A tax allocated based on a person's ability to pay, rather than, for example, requiring everyone to pay an equal percentage of their income, is known as what type of tax?

Compare and contrast the flat tax and the progressive tax, and describe which tax was more closely related to President Reagan's policies.

Discuss how federal government bureaucracies typically determine how much to ask for in budget allocations. Explain what factors keep most such budgets from going down.

Because everyone pays the same rate of sales tax on purchases, and less wealthy people spend most of their income buying things, as opposed to saving and investing, what kind of impact does the sales tax have?

Which tax is currently the single greatest source of federal revenues, comprising almost half of total federal tax revenue?

Which of the following is an important governmental justification for progressive taxation?

Explain the role of the Federal Reserve System in the United States.

Which of the following best describes how the Social Security system is funded?

On what basis does the text suggest that no one in Congress is responsible for the budget as a whole?

Monetary policy includes which of the following?

For what reason was the U.S. income tax first introduced?

Discuss the creation of the income tax in the United States, and explain why the Sixteenth Amendment was necessary.

Explain the difference between budget authority and budget outlays.

Discuss monetary policy. Explain how it compares to economic policy.

Explain what makes a tax regressive, and provide an example of one.

Controlling U.S. monetary policy is the responsibility of which of the following?

When the U.S. government adjusts the amount of money in circulation in order to alter credit markets and employment, which of the following is the government relying on to influence the economy?

Which of the following are government expenditures that exceed receipts?

Much of the federal budget goes toward the cost of Social Security, yet congressional efforts to change this are hampered because spending for this program is considered to be which of the following?

Describe President George W. Bush's election tax pledges and what happened to budget deficits during his presidency.

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