Exam 16: Government and the Economy

Describe some of the different tools and techniques that the federal government has at its disposal for regulating and effecting economic policy.What are monetary policies? Fiscal policies? What are other ways in which the government can encourage or compel businesses to behave in certain ways?

Supply-side economics is the idea that

Which of the following is not an example of mandatory spending?

Which of the following statements best characterizes the percentage of the federal budget that is spent on mandatory programs?

The Federal Reserve System is the chief institution for the establishment of monetary policy.

Which of the following statements best describes the federal government's role in higher education?

A(n)______ is an incentive in the tax code for individuals and corporations to invest their money in ways the government desires in exchange for a reduction in tax liabilities.

______ is the current chair of the Federal Reserve Board,appointed by George W.Bush in 2005.

What did the Great Depression and World War II do to the public's expectations regarding employment?

Public goods are products or services provided by the government because they cannot be effectively supplied by the marketplace.

There is wide disagreement about the degree to which government should be involved in the economy and for what reasons.Describe the three main competing theories about the proper role of government in the economy: laissez-faire,Keynesian,and monetarism.For each theory,explain what is perceived as the ideal role of government.What are some of the practical problems with each theory?

Open-market operations describe the

The ______ is determined by the amount by which government spending exceeds government revenue in a fiscal year.

The power to raise or lower the tax rate is part of

It would be nearly impossible for the marketplace to run efficiently without some government involvement.Describe some of the different roles that the government plays in the economy.Why is some level of governmental involvement always needed in the economy?

Tax increases on middle- and lower-class people fight inflation because

Which of the following does the Small Business Administration (SBA)provide?

The tax reform laws of 1981 and 1986 were significant because they

Economic subsidies were first introduced in the United States during the 1930s.

Which of the following was not a major form of economic promotion by the federal government in the nineteenth century?