Question 1

The primary source of federal revenue is

Accepted Answer

A)  the corporate income tax 
B)  the individual income tax 
C)  excise taxes 
D)  Social Security taxes 
A)  the corporate income tax 
B)  the individual income tax 
C)  excise taxes 
D)  Social Security taxes B

Question 2

The Federal Reserve Board oversees the operations of banks that participate in the Federal Reserve System. It has the power to do the following except:

Accepted Answer

A)  lend member banks money. 
B)  control the amount of money a bank has on reserve. 
C)  print money. 
D)  buy up governmental bond held by investors. 
A)  lend member banks money. 
B)  control the amount of money a bank has on reserve. 
C)  print money. 
D)  buy up governmental bond held by investors. C

Question 3

Interest rates for home mortgages and consumers loans rose to the 12 to 14 percents in the 1980s due to:

Accepted Answer

A)  less spending by consumers 
B)  the federal budget deficit 
C)  trade imbalance 
D)  balanced federal budgets 
A)  less spending by consumers 
B)  the federal budget deficit 
C)  trade imbalance 
D)  balanced federal budgets B

Question 4

The shift from budget deficits to budget surpluses in 1998 was due to several factors. Which of the following was NOT a factor?

Accepted Answer

A)  A strengthened economy and low inflation rate reduced the rate of increase in entitlement programs 
B)  The private sector experienced significant economic growth 
C)  Defense spending on the Persian Gulf War 
D)  The booming stock market in the 1990s meant higher state and federal revenues from capital gains 
A)  A strengthened economy and low inflation rate reduced the rate of increase in entitlement programs 
B)  The private sector experienced significant economic growth 
C)  Defense spending on the Persian Gulf War 
D)  The booming stock market in the 1990s meant higher state and federal revenues from capital gains

Question 5

The Economic Growth & Tax Relief Reconciliation Act of 2001

Accepted Answer

A)  repeals the estate tax 
B)  increases the child tax credit 
C)  expires in 2010 
D)  all of the above 
A)  repeals the estate tax 
B)  increases the child tax credit 
C)  expires in 2010 
D)  all of the above

Question 6

Fragmentation within the executive branch of government is an obstacle to developing economic policy. Which of these cabinet-level departments does not have responsibility for economic policy?

Accepted Answer

A)  Treasury Department 
B)  Office of Management and Budget 
C)  Labor Department 
D)  Commerce Department 
A)  Treasury Department 
B)  Office of Management and Budget 
C)  Labor Department 
D)  Commerce Department

Question 7

The impact of entitlement programs is an obstacle to effective economic policy. Which of the following are considered entitlement programs?

Accepted Answer

A)  Social Security and Teach for America 
B)  Social Security, Medicare and Medicaid 
C)  Medicare, Peace Corps, and Social Security 
A)  Social Security and Teach for America 
B)  Social Security, Medicare and Medicaid 
C)  Medicare, Peace Corps, and Social Security

Question 8

Fragmentation of responsibility for economic policy exists at the federal level.

Accepted Answer

A) True 
 B)False

Question 9

Who most influences the money supply?

Accepted Answer

A)  President 
B)  Congress 
C)  Federal Reserve Board 
A)  President 
B)  Congress 
C)  Federal Reserve Board

Question 10

The ability of an executive (President or Governor) to mark out specific items in a budget passed by the Legislature is called a

Accepted Answer

A)  Strike-out Law 
B)  Line-item Veto 
C)  Pocket Veto 
D)  Executive Privilege Law 
A)  Strike-out Law 
B)  Line-item Veto 
C)  Pocket Veto 
D)  Executive Privilege Law

Question 11

Because of its proportion of federal expenditures, substantially limiting federal spending requires cutting spending on _____.

Accepted Answer

A)  defense 
B)  foreign aid 
C)  welfare spending 
D)  education 
A)  defense 
B)  foreign aid 
C)  welfare spending 
D)  education

Question 12

Fiscal policy includes:

Accepted Answer

A)  open market operations 
B)  control of the money supply 
C)  changes in the federal deficit 
D)  control of the reserve requirement 
E)  regulation of interest rates 
A)  open market operations 
B)  control of the money supply 
C)  changes in the federal deficit 
D)  control of the reserve requirement 
E)  regulation of interest rates

Question 13

Supply-side tax cuts focus on upper-income levels, especially corporate profits and capital gains because

Accepted Answer

A)  they are the most likely to make political contributions 
B)  they are the most likely to create jobs 
C)  they are the most likely sources of significant investment 
D)  they are the majority of population 
A)  they are the most likely to make political contributions 
B)  they are the most likely to create jobs 
C)  they are the most likely sources of significant investment 
D)  they are the majority of population

Question 14

The largest portion of the federal budget goes to

Accepted Answer

A)  Defense 
B)  Medicare 
C)  Social Security 
D)  Foreign aid 
A)  Defense 
B)  Medicare 
C)  Social Security 
D)  Foreign aid

Question 15

Defense spending in 2010 is _________ more than it was in 1998

Accepted Answer

A)  100 percent 
B)  250 percent 
C)  10 percent 
D)  25 percent 
A)  100 percent 
B)  250 percent 
C)  10 percent 
D)  25 percent

Question 16

Some economic analysts argue that the size of the total debt, projected to increase to 80 percent of GDP by 2020 is placing major pressure on the nation's economy.

Accepted Answer

A) True 
 B)False

Question 17

The terms "tax reform" and "tax cuts" refer to the same thing.

Accepted Answer

A) True 
 B)False

Question 18

During the 1990s the U.S. experienced

Accepted Answer

A)  economic growth 
B)  low unemployment 
C)  low interest rates 
D)  all of the above 
E)  none of the above 
A)  economic growth 
B)  low unemployment 
C)  low interest rates 
D)  all of the above 
E)  none of the above

Question 19

The Balanced Budget and Emergency Deficit Control Act of 1985, known as the Gramm-Rudman included two significant changes in the federal budget process.

Accepted Answer

A)  balanced budget requirement and national debt reduction 
B)  across the board budget cuts and agreement between Congress and the president 
C)  targeted deficit levels requirements and triggered automatic spending cuts 
D)  defense and domestic spending cuts 
A)  balanced budget requirement and national debt reduction 
B)  across the board budget cuts and agreement between Congress and the president 
C)  targeted deficit levels requirements and triggered automatic spending cuts 
D)  defense and domestic spending cuts

Question 20

One way to stimulate growth in the economy is to

Accepted Answer

A)  have a high trade deficit 
B)  raise taxes 
C)  increase the size of the federal deficit 
D)  increase unemployment 
A)  have a high trade deficit 
B)  raise taxes 
C)  increase the size of the federal deficit 
D)  increase unemployment

The primary source of federal revenue is

The Federal Reserve Board oversees the operations of banks that participate in the Federal Reserve System. It has the power to do the following except:

Interest rates for home mortgages and consumers loans rose to the 12 to 14 percents in the 1980s due to:

The shift from budget deficits to budget surpluses in 1998 was due to several factors. Which of the following was NOT a factor?

The Economic Growth & Tax Relief Reconciliation Act of 2001

Fragmentation within the executive branch of government is an obstacle to developing economic policy. Which of these cabinet-level departments does not have responsibility for economic policy?

The impact of entitlement programs is an obstacle to effective economic policy. Which of the following are considered entitlement programs?

Fragmentation of responsibility for economic policy exists at the federal level.

Who most influences the money supply?

The ability of an executive (President or Governor) to mark out specific items in a budget passed by the Legislature is called a

Because of its proportion of federal expenditures, substantially limiting federal spending requires cutting spending on _____.

Fiscal policy includes:

Supply-side tax cuts focus on upper-income levels, especially corporate profits and capital gains because

The largest portion of the federal budget goes to

Defense spending in 2010 is _________ more than it was in 1998

Some economic analysts argue that the size of the total debt, projected to increase to 80 percent of GDP by 2020 is placing major pressure on the nation's economy.

The terms "tax reform" and "tax cuts" refer to the same thing.

During the 1990s the U.S. experienced

The Balanced Budget and Emergency Deficit Control Act of 1985, known as the Gramm-Rudman included two significant changes in the federal budget process.

One way to stimulate growth in the economy is to

Public Policy: an Introduction

Contexts of Public Policy

The Economy: Changing Government-Business Relationships

Energy and Environmental Policies: Policy Instability

Crime and Criminal Justice: Dilemmas of Social Control

Poverty and Social Welfare Policy

Health Care: Historic Change

Education: Conflict in Policy Direction

Legal and Social Equality: the Struggle Against Oppression and Bigotry

Immigration Policy: the Barely Open Door

Foreign Defense Policy: Security and Interests in a Dangerous World

Private Morality and Public Policy: Moral Values, the Constitution, and the Open Society

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Exam 4: Economic Issues: Taxing, Spending, and Budgeting

The primary source of federal revenue is

The Federal Reserve Board oversees the operations of banks that participate in the Federal Reserve System. It has the power to do the following except:

Interest rates for home mortgages and consumers loans rose to the 12 to 14 percents in the 1980s due to:

The shift from budget deficits to budget surpluses in 1998 was due to several factors. Which of the following was NOT a factor?

The Economic Growth & Tax Relief Reconciliation Act of 2001

Fragmentation within the executive branch of government is an obstacle to developing economic policy. Which of these cabinet-level departments does not have responsibility for economic policy?

The impact of entitlement programs is an obstacle to effective economic policy. Which of the following are considered entitlement programs?

Fragmentation of responsibility for economic policy exists at the federal level.

Who most influences the money supply?

The ability of an executive (President or Governor) to mark out specific items in a budget passed by the Legislature is called a

Because of its proportion of federal expenditures, substantially limiting federal spending requires cutting spending on _____.

Fiscal policy includes:

Supply-side tax cuts focus on upper-income levels, especially corporate profits and capital gains because

The largest portion of the federal budget goes to

Defense spending in 2010 is _________ more than it was in 1998

Some economic analysts argue that the size of the total debt, projected to increase to 80 percent of GDP by 2020 is placing major pressure on the nation's economy.

The terms "tax reform" and "tax cuts" refer to the same thing.

During the 1990s the U.S. experienced

The Balanced Budget and Emergency Deficit Control Act of 1985, known as the Gramm-Rudman included two significant changes in the federal budget process.

One way to stimulate growth in the economy is to

Public Policy: an Introduction

Contexts of Public Policy

The Economy: Changing Government-Business Relationships

Energy and Environmental Policies: Policy Instability

Crime and Criminal Justice: Dilemmas of Social Control

Poverty and Social Welfare Policy

Health Care: Historic Change

Education: Conflict in Policy Direction

Legal and Social Equality: the Struggle Against Oppression and Bigotry

Immigration Policy: the Barely Open Door

Foreign Defense Policy: Security and Interests in a Dangerous World

Private Morality and Public Policy: Moral Values, the Constitution, and the Open Society

Filters