Question 1

The most consistently powerful nongovernment actors in determining economic policy are

Accepted Answer

A)  labor unions. 
B)  environmental groups. 
C)  business organizations. 
D)  foreign nations. 
E)  private citizens. 
A)  labor unions. 
B)  environmental groups. 
C)  business organizations. 
D)  foreign nations. 
E)  private citizens. C

Question 2

Who among the following advocated for laissez-faire capitalism?

Accepted Answer

A)  John Maynard Keynes 
B)  Milton Friedman 
C)  Joseph Schumpeter 
D)  Karl Marx 
E)  Adam Smith 
A)  John Maynard Keynes 
B)  Milton Friedman 
C)  Joseph Schumpeter 
D)  Karl Marx 
E)  Adam Smith E

Question 3

Which of the following is not a possible cause of the increase in economic inequality over the past several decades?

Accepted Answer

A)  the decline of labor unions 
B)  tax policies 
C)  the collapse of the domestic high-tech industry 
D)  globalization 
E)  computerization 
A)  the decline of labor unions 
B)  tax policies 
C)  the collapse of the domestic high-tech industry 
D)  globalization 
E)  computerization C

Question 4

The theory of laissez-faire argues that economic growth increases when government leaves the marketplace alone.

Accepted Answer

A) True 
 B)False

Question 5

Which of the Founders was most responsible for establishment of the Bank of the United States?

Accepted Answer

A)  Thomas Jefferson 
B)  James Madison 
C)  John Adams 
D)  Alexander Hamilton 
E)  Benjamin Franklin 
A)  Thomas Jefferson 
B)  James Madison 
C)  John Adams 
D)  Alexander Hamilton 
E)  Benjamin Franklin

Question 6

Why did the Democrats believe that the 2001 tax cuts should only remain permanent for those making less than $250,000 a year?

Accepted Answer

A)  High-income earners (those making more than $250,000 a year)had benefited disproportionately from economic growth in the early 2000s. 
B)  The original tax cuts for those making more than $250,000 a year were overwhelmingly unpopular with the American public. 
C)  Most Democratic members of Congress make less than $250,000 a year. 
D)  Tax cuts for the wealthy stimulate the economy. 
E)  The original 2001 tax cut legislation stipulated that after ten years the tax cuts for those making over $250,000 a year would be repealed. 
A)  High-income earners (those making more than $250,000 a year)had benefited disproportionately from economic growth in the early 2000s. 
B)  The original tax cuts for those making more than $250,000 a year were overwhelmingly unpopular with the American public. 
C)  Most Democratic members of Congress make less than $250,000 a year. 
D)  Tax cuts for the wealthy stimulate the economy. 
E)  The original 2001 tax cut legislation stipulated that after ten years the tax cuts for those making over $250,000 a year would be repealed.

Question 7

The index of the total output of goods and services produced in a national economy is called the

Accepted Answer

A)  federal funds rate. 
B)  inflation index. 
C)  gross domestic product. 
D)  monetary fund. 
E)  consumer price index. 
A)  federal funds rate. 
B)  inflation index. 
C)  gross domestic product. 
D)  monetary fund. 
E)  consumer price index.

Question 8

What is the most important way the government affects personal and corporate investments?

Accepted Answer

A)  granting tax breaks for stock gains and losses 
B)  promoting investor confidence through policies enforcing stability and regard for the law 
C)  allowing Social Security pensions to be invested in the stock market 
D)  requiring that all stock and bond transfers remain confidential 
E)  bailing out corporations like GM that are considered "too big to fail" 
A)  granting tax breaks for stock gains and losses 
B)  promoting investor confidence through policies enforcing stability and regard for the law 
C)  allowing Social Security pensions to be invested in the stock market 
D)  requiring that all stock and bond transfers remain confidential 
E)  bailing out corporations like GM that are considered "too big to fail"

Question 9

When people in the lower income brackets pay a larger percentage of their income toward a tax,it is called ______ taxation.

Accepted Answer

A)  progressive 
B)  regressive 
C)  inflationary 
D)  redistributive 
E)  distributive 
A)  progressive 
B)  regressive 
C)  inflationary 
D)  redistributive 
E)  distributive

Question 10

Write an essay explaining the different goals of economic policy.How have some of these goals changed over the course of American history? Why do economic policy goals often conflict with each other? Give an example.

Accepted Answer

Economic policy is a set of measures and

Question 11

Most of the groundbreaking environmental laws were written in the

Accepted Answer

A)  1950s. 
B)  1970s. 
C)  1980s. 
D)  1990s. 
E)  2000s. 
A)  1950s. 
B)  1970s. 
C)  1980s. 
D)  1990s. 
E)  2000s.

Question 12

The goal of the Works Progress Administration (WPA)was to

Accepted Answer

A)  put unemployed persons to work on public projects. 
B)  establish federal standards for hiring,firing,and laying off employees. 
C)  begin the nationalization of the American labor force. 
D)  help distribute food and aid to unemployed workers. 
E)  require companies to hire laid-off workers who had been out of work for six months or more. 
A)  put unemployed persons to work on public projects. 
B)  establish federal standards for hiring,firing,and laying off employees. 
C)  begin the nationalization of the American labor force. 
D)  help distribute food and aid to unemployed workers. 
E)  require companies to hire laid-off workers who had been out of work for six months or more.

Question 13

Which of the following has not been a major goal of the government's involvement in the economy?

Accepted Answer

A)  promoting economic equity and fairness for all citizens 
B)  promoting economic stability 
C)  encouraging business development and innovation 
D)  stimulating economic growth 
E)  protecting employees and consumers 
A)  promoting economic equity and fairness for all citizens 
B)  promoting economic stability 
C)  encouraging business development and innovation 
D)  stimulating economic growth 
E)  protecting employees and consumers

Question 14

Which of the following was not one of the goals of the American Recovery and Reinvestment Act of 2009?

Accepted Answer

A)  encourage economic growth 
B)  develop weatherization projects and clean technology construction 
C)  save existing jobs that might be lost due to the economic recession 
D)  provide for a national health care system 
E)  make longer-term investments to encourage job creation 
A)  encourage economic growth 
B)  develop weatherization projects and clean technology construction 
C)  save existing jobs that might be lost due to the economic recession 
D)  provide for a national health care system 
E)  make longer-term investments to encourage job creation

Question 15

Sales taxes are ______,and most income taxes are ______.

Accepted Answer

A)  regressive;regressive 
B)  progressive;progressive 
C)  progressive;regressive 
D)  regressive;progressive 
E)  high;low 
A)  regressive;regressive 
B)  progressive;progressive 
C)  progressive;regressive 
D)  regressive;progressive 
E)  high;low

Question 16

Which of the following was a driving force for economic growth during the late nineteenth century?

Accepted Answer

A)  agriculture 
B)  war 
C)  manufacturing industries 
D)  government work projects 
E)  international trade 
A)  agriculture 
B)  war 
C)  manufacturing industries 
D)  government work projects 
E)  international trade

Question 17

When the price level of goods and services increases over several months,it is called

Accepted Answer

A)  monetarism. 
B)  a deficit. 
C)  open-market operations. 
D)  inflation. 
E)  recession. 
A)  monetarism. 
B)  a deficit. 
C)  open-market operations. 
D)  inflation. 
E)  recession.

Question 18

Which of the following is not a way in which the government promotes business development?

Accepted Answer

A)  subsidies 
B)  tax breaks 
C)  loans 
D)  regulations 
E)  grants 
A)  subsidies 
B)  tax breaks 
C)  loans 
D)  regulations 
E)  grants

Question 19

Which of the following statements about the United States budget deficit is most accurate?

Accepted Answer

A)  The federal deficit has decreased dramatically since 2000. 
B)  The federal budget showed a large surplus throughout the 1980s. 
C)  The federal budget deficit increased dramatically after 2001. 
D)  The federal budget has not shown a surplus since 1960. 
E)  The federal budget deficit was at its largest point in history in 1992. 
A)  The federal deficit has decreased dramatically since 2000. 
B)  The federal budget showed a large surplus throughout the 1980s. 
C)  The federal budget deficit increased dramatically after 2001. 
D)  The federal budget has not shown a surplus since 1960. 
E)  The federal budget deficit was at its largest point in history in 1992.

Question 20

Who was the most prominent monetarist in the United States?

Accepted Answer

A)  John Locke 
B)  Adam Smith 
C)  John Maynard Keynes 
D)  Milton Friedman 
E)  Joseph Schumpeter 
A)  John Locke 
B)  Adam Smith 
C)  John Maynard Keynes 
D)  Milton Friedman 
E)  Joseph Schumpeter

The most consistently powerful nongovernment actors in determining economic policy are

Who among the following advocated for laissez-faire capitalism?

Which of the following is not a possible cause of the increase in economic inequality over the past several decades?

The theory of laissez-faire argues that economic growth increases when government leaves the marketplace alone.

Which of the Founders was most responsible for establishment of the Bank of the United States?

Why did the Democrats believe that the 2001 tax cuts should only remain permanent for those making less than $250,000 a year?

The index of the total output of goods and services produced in a national economy is called the

What is the most important way the government affects personal and corporate investments?

When people in the lower income brackets pay a larger percentage of their income toward a tax,it is called ______ taxation.

Write an essay explaining the different goals of economic policy.How have some of these goals changed over the course of American history? Why do economic policy goals often conflict with each other? Give an example.

Most of the groundbreaking environmental laws were written in the

The goal of the Works Progress Administration (WPA)was to

Which of the following has not been a major goal of the government's involvement in the economy?

Which of the following was not one of the goals of the American Recovery and Reinvestment Act of 2009?

Sales taxes are ,and most income taxes are .

Which of the following was a driving force for economic growth during the late nineteenth century?

When the price level of goods and services increases over several months,it is called

Which of the following is not a way in which the government promotes business development?

Which of the following statements about the United States budget deficit is most accurate?

Who was the most prominent monetarist in the United States?

American Political Culture

The Founding and the Constitution

Federalism

Civil Liberties

Civil Rights

Public Opinion

The Media

Political Participation and Voting

Political Parties

Campaigns and Elections

Groups and Interests

Congress

The Presidency

Bureaucracy in a Democracy

The Federal Courts

Social Policy

Foreign Policy and Democracy

Filters

Exam 16: Government and the Economy

The most consistently powerful nongovernment actors in determining economic policy are

Who among the following advocated for laissez-faire capitalism?

Which of the following is not a possible cause of the increase in economic inequality over the past several decades?

The theory of laissez-faire argues that economic growth increases when government leaves the marketplace alone.

Which of the Founders was most responsible for establishment of the Bank of the United States?

Why did the Democrats believe that the 2001 tax cuts should only remain permanent for those making less than $250,000 a year?

The index of the total output of goods and services produced in a national economy is called the

What is the most important way the government affects personal and corporate investments?

When people in the lower income brackets pay a larger percentage of their income toward a tax,it is called ______ taxation.

Write an essay explaining the different goals of economic policy.How have some of these goals changed over the course of American history? Why do economic policy goals often conflict with each other? Give an example.

Most of the groundbreaking environmental laws were written in the

The goal of the Works Progress Administration (WPA)was to

Which of the following has not been a major goal of the government's involvement in the economy?

Which of the following was not one of the goals of the American Recovery and Reinvestment Act of 2009?

Sales taxes are ______,and most income taxes are ______.

Which of the following was a driving force for economic growth during the late nineteenth century?

When the price level of goods and services increases over several months,it is called

Which of the following is not a way in which the government promotes business development?

Which of the following statements about the United States budget deficit is most accurate?

Who was the most prominent monetarist in the United States?

American Political Culture

The Founding and the Constitution

Federalism

Civil Liberties

Civil Rights

Public Opinion

The Media

Political Participation and Voting

Political Parties

Campaigns and Elections

Groups and Interests

Congress

The Presidency

Bureaucracy in a Democracy

The Federal Courts

Social Policy

Foreign Policy and Democracy

Filters

Sales taxes are ,and most income taxes are .