Question 1

A tax on imported goods is called a

Accepted Answer

A)  regressive tax. 
B)  public good. 
C)  tariff. 
D)  monopoly tax. 
E)  progressive tax. 
A)  regressive tax. 
B)  public good. 
C)  tariff. 
D)  monopoly tax. 
E)  progressive tax.

Question 2

What year marked the beginning of the Great Depression?

Accepted Answer

A)  1918 
B)  1921 
C)  1929 
D)  1933 
E)  1941 
A)  1918 
B)  1921 
C)  1929 
D)  1933 
E)  1941

Question 3

What event marked the major historical turning point in the relationship between the government and the marketplace?

Accepted Answer

A)  the Civil War 
B)  the Depression of 1896 
C)  the Great Depression 
D)  World War II 
E)  the implementation of Reaganomics 
A)  the Civil War 
B)  the Depression of 1896 
C)  the Great Depression 
D)  World War II 
E)  the implementation of Reaganomics

Question 4

Which U.S.president once said,"I am now a Keynesian"?

Accepted Answer

A)  Herbert Hoover 
B)  Richard Nixon 
C)  Ronald Reagan 
D)  George W.Bush 
E)  Franklin Roosevelt 
A)  Herbert Hoover 
B)  Richard Nixon 
C)  Ronald Reagan 
D)  George W.Bush 
E)  Franklin Roosevelt

Question 5

Green technologies may prove to be a boon for the American economy because

Accepted Answer

A)  the United States has already signed trade agreements with numerous countries to export green technologies. 
B)  the United Nations has passed a resolution asserting that only the United States will be allowed to produce green technologies for the next ten years. 
C)  the profit margins on green technologies are much higher than those of more traditional products. 
D)  many countries around the world have decided to use only energy efficient products. 
E)  America's highly skilled labor force provides them with a competitive advantage over many other countries. 
A)  the United States has already signed trade agreements with numerous countries to export green technologies. 
B)  the United Nations has passed a resolution asserting that only the United States will be allowed to produce green technologies for the next ten years. 
C)  the profit margins on green technologies are much higher than those of more traditional products. 
D)  many countries around the world have decided to use only energy efficient products. 
E)  America's highly skilled labor force provides them with a competitive advantage over many other countries.

Question 6

Approximately what percentage of the federal budget is made up of uncontrollables?

Accepted Answer

A)  25 percent 
B)  35 percent 
C)  42 percent 
D)  60 percent 
E)  90 percent 
A)  25 percent 
B)  35 percent 
C)  42 percent 
D)  60 percent 
E)  90 percent

Question 7

Why have politicians always favored using subsidies to promote certain economic activities?

Accepted Answer

A)  They can be treated as "benefits" that can be spread widely in response to many demands. 
B)  They are generally cheaper than other forms of government support. 
C)  Recipients are always required to pay back the subsidies. 
D)  Congress does not have to pass legislation in order to provide subsidies. 
E)  They are paid for through international tariffs rather than personal income taxes. 
A)  They can be treated as "benefits" that can be spread widely in response to many demands. 
B)  They are generally cheaper than other forms of government support. 
C)  Recipients are always required to pay back the subsidies. 
D)  Congress does not have to pass legislation in order to provide subsidies. 
E)  They are paid for through international tariffs rather than personal income taxes.

Question 8

Those who believe in ______ argue that the government's role in regulating the economy should be limited to regulating the supply of money.

Accepted Answer

A)  Keynesianism 
B)  monetarism 
C)  fiscalism 
D)  inflation 
E)  laissez-faire capitalism 
A)  Keynesianism 
B)  monetarism 
C)  fiscalism 
D)  inflation 
E)  laissez-faire capitalism

Question 9

All of the following are strategies to combat inflation except

Accepted Answer

A)  pushing up interest rates in order to restrain the amount of credit in the economy. 
B)  increasing the amount of government spending on public works projects. 
C)  instituting wage and price controls. 
D)  cutting taxes. 
E)  raising Social Security taxes. 
A)  pushing up interest rates in order to restrain the amount of credit in the economy. 
B)  increasing the amount of government spending on public works projects. 
C)  instituting wage and price controls. 
D)  cutting taxes. 
E)  raising Social Security taxes.

Question 10

Which of the following best describes the views of Milton Friedman?

Accepted Answer

A)  Government is obligated to increase spending when private businesses are unable to stimulate growth. 
B)  Government should let the growth in the money supply match the rate of economic growth. 
C)  Capitalism promotes inequality that in time will harm the foundations of democratic governance. 
D)  The government should enact high tariffs to make non-American goods too expensive to be competitive with American products. 
E)  The economy has natural cycles of ups and downs,so government should let the market regulate itself. 
A)  Government is obligated to increase spending when private businesses are unable to stimulate growth. 
B)  Government should let the growth in the money supply match the rate of economic growth. 
C)  Capitalism promotes inequality that in time will harm the foundations of democratic governance. 
D)  The government should enact high tariffs to make non-American goods too expensive to be competitive with American products. 
E)  The economy has natural cycles of ups and downs,so government should let the market regulate itself.

Question 11

The first Bank of the United States was founded in 1876.

Accepted Answer

A) True 
 B)False

Question 12

______ are given to states and local governments on the condition that all expenditures are limited to the problem or group specified by law.

Accepted Answer

A)  Tariffs 
B)  Loopholes 
C)  Monopolies 
D)  Categorical grants 
E)  Block grants 
A)  Tariffs 
B)  Loopholes 
C)  Monopolies 
D)  Categorical grants 
E)  Block grants

Question 13

______ policies are designed to eliminate the abuses of powerful ______.

Accepted Answer

A)  Redistributive;tariffs 
B)  Fiscal;loopholes 
C)  Antitrust;monopolies 
D)  Taxation;gross domestic product indexes 
E)  Monetary;interest groups 
A)  Redistributive;tariffs 
B)  Fiscal;loopholes 
C)  Antitrust;monopolies 
D)  Taxation;gross domestic product indexes 
E)  Monetary;interest groups

Question 14

If a new tax on luxury goods,such as sports cars,boats,and helicopters,were passed in order to reduce the disparities between the highest and lowest income brackets,we would refer to this as a(n)

Accepted Answer

A)  entitlement program. 
B)  tariff. 
C)  regressive tax policy. 
D)  policy of redistribution. 
E)  loophole. 
A)  entitlement program. 
B)  tariff. 
C)  regressive tax policy. 
D)  policy of redistribution. 
E)  loophole.

Question 15

According to many analysts,the spurt of economic growth in 2003 illustrates that

Accepted Answer

A)  the federal government can always produce large levels of economic growth if it makes the right decisions regarding deficit spending. 
B)  inflation is always a problem that government should attempt to solve. 
C)  inflation is not a problem that government should attempt to solve. 
D)  some kinds of public investment,such as military spending on wars,can produce economic growth as a byproduct of pursuing other,more central objectives. 
E)  public investment always reduces economic growth and should,therefore,be eliminated. 
A)  the federal government can always produce large levels of economic growth if it makes the right decisions regarding deficit spending. 
B)  inflation is always a problem that government should attempt to solve. 
C)  inflation is not a problem that government should attempt to solve. 
D)  some kinds of public investment,such as military spending on wars,can produce economic growth as a byproduct of pursuing other,more central objectives. 
E)  public investment always reduces economic growth and should,therefore,be eliminated.

Question 16

Economic policy is often very political.Assess some of the political dynamics at work in the drafting and implementation of economic policies.What have been some of the key American values promoted through economic policy?

Accepted Answer

Economic policy is indeed very political

Question 17

A tax on a pack of cigarettes is a regressive tax.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following actions marked a decisive break with the tradition of the federal government promoting compromises between labor and management?

Accepted Answer

A)  In 1981,Ronald Reagan fired striking air traffic controllers and hired permanent replacements to fill their jobs. 
B)  In 1985,Reagan sent in the National Guard to break up picketing in front of major defense contractors,such as Lockheed and Boeing. 
C)  In 1992,Congress passed and George H.W.Bush signed legislation dismantling the National Labor Relations Board. 
D)  In 1994,Congress passed and Bill Clinton signed legislation permitting companies to shut down without giving their employees advance notification. 
E)  The 1934 National Labor Relations Act set up a framework for labor relations. 
A)  In 1981,Ronald Reagan fired striking air traffic controllers and hired permanent replacements to fill their jobs. 
B)  In 1985,Reagan sent in the National Guard to break up picketing in front of major defense contractors,such as Lockheed and Boeing. 
C)  In 1992,Congress passed and George H.W.Bush signed legislation dismantling the National Labor Relations Board. 
D)  In 1994,Congress passed and Bill Clinton signed legislation permitting companies to shut down without giving their employees advance notification. 
E)  The 1934 National Labor Relations Act set up a framework for labor relations.

Question 19

Upton Sinclair's 1906 exposé The Jungle revealed the

Accepted Answer

A)  widespread use of child labor in coal mines and factories throughout the United States. 
B)  violent suppression of labor unions by big business. 
C)  control of politicians by corporate interests who run the political machines. 
D)  unsanitary practices at meatpacking plants. 
E)  violent uprisings of union members across the United States. 
A)  widespread use of child labor in coal mines and factories throughout the United States. 
B)  violent suppression of labor unions by big business. 
C)  control of politicians by corporate interests who run the political machines. 
D)  unsanitary practices at meatpacking plants. 
E)  violent uprisings of union members across the United States.

Question 20

Setting emissions standards for each industry,while allowing companies to trade "carbon credits," is an approach to environmental policy known as

Accepted Answer

A)  cap and trade. 
B)  the green alternative. 
C)  NIMBY. 
D)  the Wall Street cooler. 
E)  the Gore protocol. 
A)  cap and trade. 
B)  the green alternative. 
C)  NIMBY. 
D)  the Wall Street cooler. 
E)  the Gore protocol.

A tax on imported goods is called a

What year marked the beginning of the Great Depression?

What event marked the major historical turning point in the relationship between the government and the marketplace?

Which U.S.president once said,"I am now a Keynesian"?

Green technologies may prove to be a boon for the American economy because

Approximately what percentage of the federal budget is made up of uncontrollables?

Why have politicians always favored using subsidies to promote certain economic activities?

Those who believe in ______ argue that the government's role in regulating the economy should be limited to regulating the supply of money.

All of the following are strategies to combat inflation except

Which of the following best describes the views of Milton Friedman?

The first Bank of the United States was founded in 1876.

______ are given to states and local governments on the condition that all expenditures are limited to the problem or group specified by law.

policies are designed to eliminate the abuses of powerful .

If a new tax on luxury goods,such as sports cars,boats,and helicopters,were passed in order to reduce the disparities between the highest and lowest income brackets,we would refer to this as a(n)

According to many analysts,the spurt of economic growth in 2003 illustrates that

Economic policy is often very political.Assess some of the political dynamics at work in the drafting and implementation of economic policies.What have been some of the key American values promoted through economic policy?

A tax on a pack of cigarettes is a regressive tax.

Which of the following actions marked a decisive break with the tradition of the federal government promoting compromises between labor and management?

Upton Sinclair's 1906 exposé The Jungle revealed the

Setting emissions standards for each industry,while allowing companies to trade "carbon credits," is an approach to environmental policy known as

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

A tax on imported goods is called a

What year marked the beginning of the Great Depression?

What event marked the major historical turning point in the relationship between the government and the marketplace?

Which U.S.president once said,"I am now a Keynesian"?

Green technologies may prove to be a boon for the American economy because

Approximately what percentage of the federal budget is made up of uncontrollables?

Why have politicians always favored using subsidies to promote certain economic activities?

Those who believe in ______ argue that the government's role in regulating the economy should be limited to regulating the supply of money.

All of the following are strategies to combat inflation except

Which of the following best describes the views of Milton Friedman?

The first Bank of the United States was founded in 1876.

______ are given to states and local governments on the condition that all expenditures are limited to the problem or group specified by law.

______ policies are designed to eliminate the abuses of powerful ______.

If a new tax on luxury goods,such as sports cars,boats,and helicopters,were passed in order to reduce the disparities between the highest and lowest income brackets,we would refer to this as a(n)

According to many analysts,the spurt of economic growth in 2003 illustrates that

Economic policy is often very political.Assess some of the political dynamics at work in the drafting and implementation of economic policies.What have been some of the key American values promoted through economic policy?

A tax on a pack of cigarettes is a regressive tax.

Which of the following actions marked a decisive break with the tradition of the federal government promoting compromises between labor and management?

Upton Sinclair's 1906 exposé The Jungle revealed the

Setting emissions standards for each industry,while allowing companies to trade "carbon credits," is an approach to environmental policy known as

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

policies are designed to eliminate the abuses of powerful .