Question 1

When did Keynesian economic ideas lead to a revolution in thinking about the role of the government in the economy?

Accepted Answer

A)  the 1890s 
B)  the 1930s 
C)  the 1960s 
D)  the 1980s 
E)  the 1990s 
A)  the 1890s 
B)  the 1930s 
C)  the 1960s 
D)  the 1980s 
E)  the 1990s

Question 2

What economic development,according to many critics,has made Keynesian economics less useful?

Accepted Answer

A)  the end of the Cold War 
B)  the rise of international trade 
C)  the Internet 
D)  the rise of a service economy 
E)  the increasing federal budget deficit 
A)  the end of the Cold War 
B)  the rise of international trade 
C)  the Internet 
D)  the rise of a service economy 
E)  the increasing federal budget deficit

Question 3

During the 1960s,Ralph Nader was influential as a(n)

Accepted Answer

A)  environmental activist. 
B)  consumer advocate. 
C)  presidential candidate. 
D)  corporate spokesman. 
E)  member of Congress. 
A)  environmental activist. 
B)  consumer advocate. 
C)  presidential candidate. 
D)  corporate spokesman. 
E)  member of Congress.

Question 4

The first national regulatory policy was established during the Great Depression.

Accepted Answer

A) True 
 B)False

Question 5

The military industrial complex is the result of governmental contracting.

Accepted Answer

A) True 
 B)False

Question 6

Something that must be supplied by the government because it cannot be provided by the marketplace is called

Accepted Answer

A)  a public good. 
B)  a commodity. 
C)  a governmental appropriation. 
D)  pork. 
E)  public option. 
A)  a public good. 
B)  a commodity. 
C)  a governmental appropriation. 
D)  pork. 
E)  public option.

Question 7

Before World War II,______ of federal revenue was generated from individual income taxes.

Accepted Answer

A)  less than 15 percent 
B)  a quarter 
C)  half 
D)  80 percent 
E)  100 percent 
A)  less than 15 percent 
B)  a quarter 
C)  half 
D)  80 percent 
E)  100 percent

Question 8

Before the 1930s,relations between labor and management in the United States were

Accepted Answer

A)  defined by peaceful negotiations. 
B)  heavily regulated by the national government. 
C)  among the most violent in the world. 
D)  dependent on labor unions for stability. 
E)  stable. 
A)  defined by peaceful negotiations. 
B)  heavily regulated by the national government. 
C)  among the most violent in the world. 
D)  dependent on labor unions for stability. 
E)  stable.

Question 9

The Securities and Exchange Commission was established

Accepted Answer

A)  at the same time as stocks were publicly bought and sold. 
B)  after the stock market crash of 1929. 
C)  at the same time as the International Monetary Fund. 
D)  after the market crash of 1987. 
E)  after the terrorist attacks of 2001. 
A)  at the same time as stocks were publicly bought and sold. 
B)  after the stock market crash of 1929. 
C)  at the same time as the International Monetary Fund. 
D)  after the market crash of 1987. 
E)  after the terrorist attacks of 2001.

Question 10

Which of the following is not one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?

Accepted Answer

A)  Compliance with environmental regulations can be very costly. 
B)  Federal environmental standards are often set "too high." 
C)  Who should bear the costs of providing environmental benefits? 
D)  Scientific evidence can change,making some environmental regulations obsolete. 
E)  Public opinion overwhelmingly favors economic interests over the environment. 
A)  Compliance with environmental regulations can be very costly. 
B)  Federal environmental standards are often set "too high." 
C)  Who should bear the costs of providing environmental benefits? 
D)  Scientific evidence can change,making some environmental regulations obsolete. 
E)  Public opinion overwhelmingly favors economic interests over the environment.

Question 11

The United States has ______ percent of the world's population and is responsible for ______ percent of its greenhouse gas emissions.

Accepted Answer

A)  1;5 
B)  10;25 
C)  5;45 
D)  20;60 
E)  25;10 
A)  1;5 
B)  10;25 
C)  5;45 
D)  20;60 
E)  25;10

Question 12

Which of the following statements about the Federal Reserve Board (FRB)is false?

Accepted Answer

A)  The FRB is part of the Department of the Treasury. 
B)  The FRB is the main organization for setting monetary policy. 
C)  The members of the FRB are selected by the president and confirmed by the Senate. 
D)  The president cannot remove at will the members of the FRB. 
E)  The FRB sets the federal funds rate. 
A)  The FRB is part of the Department of the Treasury. 
B)  The FRB is the main organization for setting monetary policy. 
C)  The members of the FRB are selected by the president and confirmed by the Senate. 
D)  The president cannot remove at will the members of the FRB. 
E)  The FRB sets the federal funds rate.

Question 13

Which of the following are the three basic prerequisites for economic growth?

Accepted Answer

A)  public investment,economic regulation,strong workforce 
B)  domestic investment,foreign investment,government regulation 
C)  foreign investment,strong workforce,economic regulation 
D)  public investment,government investment,financial stability 
E)  public investment,innovation,strong workforce 
A)  public investment,economic regulation,strong workforce 
B)  domestic investment,foreign investment,government regulation 
C)  foreign investment,strong workforce,economic regulation 
D)  public investment,government investment,financial stability 
E)  public investment,innovation,strong workforce

Question 14

Which of the following is the best example of a public good?

Accepted Answer

A)  a computer 
B)  the interstate highway system 
C)  the airline industry 
D)  Wall Street 
E)  Harvard University 
A)  a computer 
B)  the interstate highway system 
C)  the airline industry 
D)  Wall Street 
E)  Harvard University

Question 15

The National Labor Relations Act was designed to

Accepted Answer

A)  oversee union elections and collective bargaining between labor and industry. 
B)  prohibit workers from forming unions. 
C)  establish a national minimum hourly wage. 
D)  limit the amount of money labor unions and corporations could donate to political parties. 
E)  regulate contractual negotiations between private businesses competing in the same industry. 
A)  oversee union elections and collective bargaining between labor and industry. 
B)  prohibit workers from forming unions. 
C)  establish a national minimum hourly wage. 
D)  limit the amount of money labor unions and corporations could donate to political parties. 
E)  regulate contractual negotiations between private businesses competing in the same industry.

Question 16

If the Federal Reserve wants to help boost a sagging economy,which one of the following is the most direct way it can do this?

Accepted Answer

A)  Raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses. 
B)  Lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses. 
C)  Take money out of circulation so that the dollar becomes more valuable. 
D)  Raise the reserve requirement,restricting the amount of cash and negotiable securities banks must have on hand. 
E)  Lower tariffs so that corporations can trade more freely with foreign countries. 
A)  Raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses. 
B)  Lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses. 
C)  Take money out of circulation so that the dollar becomes more valuable. 
D)  Raise the reserve requirement,restricting the amount of cash and negotiable securities banks must have on hand. 
E)  Lower tariffs so that corporations can trade more freely with foreign countries.

Question 17

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Accepted Answer

A)  control discretionary spending. 
B)  deregulate the economy. 
C)  regulate large businesses that established monopolies. 
D)  control mandatory spending. 
E)  close tax loopholes. 
A)  control discretionary spending. 
B)  deregulate the economy. 
C)  regulate large businesses that established monopolies. 
D)  control mandatory spending. 
E)  close tax loopholes.

Question 18

When the government's goals are embodied in a law or an order,backed by punishments or rewards,it is best described as

Accepted Answer

A)  public policy. 
B)  regulation. 
C)  administrative rule making. 
D)  legislation. 
E)  implementation. 
A)  public policy. 
B)  regulation. 
C)  administrative rule making. 
D)  legislation. 
E)  implementation.

Question 19

______ are government grants of cash or other valuable commodities,such as land,used to promote activities desired by the government.

Accepted Answer

A)  Contracts 
B)  Tax credits 
C)  Business development funds 
D)  Categorical grants 
E)  Subsidies 
A)  Contracts 
B)  Tax credits 
C)  Business development funds 
D)  Categorical grants 
E)  Subsidies

Question 20

Which of the following is not a power of the Federal Reserve Board?

Accepted Answer

A)  the power to increase or decrease the interest rate it charges on the loans it extends to member banks 
B)  the power to control the reserve requirement 
C)  the power to buy and sell government securities in order to increase or decrease the supply of money in the economy 
D)  the power to manipulate the interest rate charge by one bank to another on loans in the federal funds market 
E)  the power to enforce the federal government's antitrust policies 
A)  the power to increase or decrease the interest rate it charges on the loans it extends to member banks 
B)  the power to control the reserve requirement 
C)  the power to buy and sell government securities in order to increase or decrease the supply of money in the economy 
D)  the power to manipulate the interest rate charge by one bank to another on loans in the federal funds market 
E)  the power to enforce the federal government's antitrust policies

When did Keynesian economic ideas lead to a revolution in thinking about the role of the government in the economy?

What economic development,according to many critics,has made Keynesian economics less useful?

During the 1960s,Ralph Nader was influential as a(n)

The first national regulatory policy was established during the Great Depression.

The military industrial complex is the result of governmental contracting.

Something that must be supplied by the government because it cannot be provided by the marketplace is called

Before World War II,______ of federal revenue was generated from individual income taxes.

Before the 1930s,relations between labor and management in the United States were

The Securities and Exchange Commission was established

Which of the following is not one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?

The United States has percent of the world's population and is responsible for percent of its greenhouse gas emissions.

Which of the following statements about the Federal Reserve Board (FRB)is false?

Which of the following are the three basic prerequisites for economic growth?

Which of the following is the best example of a public good?

The National Labor Relations Act was designed to

If the Federal Reserve wants to help boost a sagging economy,which one of the following is the most direct way it can do this?

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

When the government's goals are embodied in a law or an order,backed by punishments or rewards,it is best described as

______ are government grants of cash or other valuable commodities,such as land,used to promote activities desired by the government.

Which of the following is not a power of the Federal Reserve Board?

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

When did Keynesian economic ideas lead to a revolution in thinking about the role of the government in the economy?

What economic development,according to many critics,has made Keynesian economics less useful?

During the 1960s,Ralph Nader was influential as a(n)

The first national regulatory policy was established during the Great Depression.

The military industrial complex is the result of governmental contracting.

Something that must be supplied by the government because it cannot be provided by the marketplace is called

Before World War II,______ of federal revenue was generated from individual income taxes.

Before the 1930s,relations between labor and management in the United States were

The Securities and Exchange Commission was established

Which of the following is not one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?

The United States has ______ percent of the world's population and is responsible for ______ percent of its greenhouse gas emissions.

Which of the following statements about the Federal Reserve Board (FRB)is false?

Which of the following are the three basic prerequisites for economic growth?

Which of the following is the best example of a public good?

The National Labor Relations Act was designed to

If the Federal Reserve wants to help boost a sagging economy,which one of the following is the most direct way it can do this?

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

When the government's goals are embodied in a law or an order,backed by punishments or rewards,it is best described as

______ are government grants of cash or other valuable commodities,such as land,used to promote activities desired by the government.

Which of the following is not a power of the Federal Reserve Board?

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

The United States has percent of the world's population and is responsible for percent of its greenhouse gas emissions.