Question 1

A progressive tax

Accepted Answer

A)  takes a higher percentage from higher incomes 
B)  takes a higher percentage from lower incomes 
C)  takes a lower percentage from higher incomes 
D)  takes the same percentage from all incomes 
A)  takes a higher percentage from higher incomes 
B)  takes a higher percentage from lower incomes 
C)  takes a lower percentage from higher incomes 
D)  takes the same percentage from all incomes

Question 2

According to Keynes, the federal government has an obligation to create demand by purchasing goods and services through increased spending.

Accepted Answer

A) True 
 B)False

Question 3

The "flat tax" proposal would:

Accepted Answer

A)  eliminate all federal taxes except the income tax. 
B)  combine the income tax and the social security tax. 
C)  eliminate many income tax deductions and reduce the number of tax brackets. 
D)  establish a "value-added tax." 
A)  eliminate all federal taxes except the income tax. 
B)  combine the income tax and the social security tax. 
C)  eliminate many income tax deductions and reduce the number of tax brackets. 
D)  establish a "value-added tax."

Question 4

During the Clinton Administration (1992-2000) the federal budget deficit

Accepted Answer

A)  increased slowly 
B)  increased rapidly 
C)  remained the same 
D)  decreased rapidly 
A)  increased slowly 
B)  increased rapidly 
C)  remained the same 
D)  decreased rapidly

Question 5

A primary goal of the Fed is to regulate the economy through control over the money supply.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT part of fiscal policy?

Accepted Answer

A)  tax policy 
B)  open market operations 
C)  government expenditures 
D)  deficit changes 
A)  tax policy 
B)  open market operations 
C)  government expenditures 
D)  deficit changes

Question 7

The annual budget deficit grew from $80 billion in 1981 to $290 billion in 1992. Which of the following was NOT a factor in increasing the deficit?

Accepted Answer

A)  large tax cuts in 1981-1983 
B)  Increased levels of defense spending in the 1980s 
C)  federally funded bailout of savings and loan institutions 
D)  federal spending on programs such as crime, transportation and education 
A)  large tax cuts in 1981-1983 
B)  Increased levels of defense spending in the 1980s 
C)  federally funded bailout of savings and loan institutions 
D)  federal spending on programs such as crime, transportation and education

Question 8

During the 1980s the national debt

Accepted Answer

A)  rose substantially 
B)  rose steadily as a percentage of GDP 
C)  was fueled by a steadily falling budget deficit 
D)  (a) and (b) only 
A)  rose substantially 
B)  rose steadily as a percentage of GDP 
C)  was fueled by a steadily falling budget deficit 
D)  (a) and (b) only

Question 9

Efficiency was a significant goal of the 1986 Tax Reform Act. It sought to diminish the importance of tax laws in business decision making.

Accepted Answer

A) True 
 B)False

Question 10

The federal budget began to produce surpluses in 1999.

Accepted Answer

A) True 
 B)False

Question 11

The United States economy is carrying over $9 trillion in debt. This deficit spending creates two policy problems.

Accepted Answer

A)  the increasing size of the national debt and habit of annual deficit spending 
B)  spending reduction and equity of taxation 
C)  budget cuts and economic inequality 
D)  increased income for the rich and lack of relief for the majority of taxpayers 
A)  the increasing size of the national debt and habit of annual deficit spending 
B)  spending reduction and equity of taxation 
C)  budget cuts and economic inequality 
D)  increased income for the rich and lack of relief for the majority of taxpayers

Question 12

A rise in the price of goods and services while the actual value of the goods and services remains the same is known as

Accepted Answer

A)  recession 
B)  jawboning 
C)  stagflation 
D)  inflation 
A)  recession 
B)  jawboning 
C)  stagflation 
D)  inflation

Question 13

A basic recommendation of "supply-side economics" is:

Accepted Answer

A)  decrease the budget deficit to raise interest rates 
B)  cut taxes to increase investment and employment 
C)  government should focus its spending on the military rather than on income support 
D)  an increase in supply will cause a decrease in demand 
A)  decrease the budget deficit to raise interest rates 
B)  cut taxes to increase investment and employment 
C)  government should focus its spending on the military rather than on income support 
D)  an increase in supply will cause a decrease in demand

Question 14

The Reagan Administration advocated a departure from Keynesian economics to engage in:

Accepted Answer

A)  nationalization of some public services 
B)  supply-side economics 
C)  promoting an industrial policy 
D)  introducing antitrust policies 
A)  nationalization of some public services 
B)  supply-side economics 
C)  promoting an industrial policy 
D)  introducing antitrust policies

Question 15

Budget deficits reappeared in 2002 as a result of a number of factors. Those factors include all but

Accepted Answer

A)  an economic downturn due to the September 11, 2001 terrorist attack 
B)  increased spending for Homeland Security efforts 
C)  the financial costs associated with Operation Iraqi Freedom 
D)  the increased cost of a barrel of oil from OPEC 
A)  an economic downturn due to the September 11, 2001 terrorist attack 
B)  increased spending for Homeland Security efforts 
C)  the financial costs associated with Operation Iraqi Freedom 
D)  the increased cost of a barrel of oil from OPEC

Question 16

Which of the following is true?

Accepted Answer

A)  the corporate income tax produces the largest share of federal revenue 
B)  the personal income tax is now a smaller revenue producer than the Social Security tax 
C)  the Social Security tax is the second largest source of federal revenue 
D)  all of the above 
A)  the corporate income tax produces the largest share of federal revenue 
B)  the personal income tax is now a smaller revenue producer than the Social Security tax 
C)  the Social Security tax is the second largest source of federal revenue 
D)  all of the above

Question 17

In macroeconomic policy, which of the following is/are highly influential?

Accepted Answer

A)  President 
B)  Congress 
C)  Federal Reserve Board 
D)  all of the above 
E)  (
A)  and (
B)  only 
A)  President 
B)  Congress 
C)  Federal Reserve Board 
D)  all of the above 
E)  (
A)  and (
B)  only

Question 18

Progressives tend to favor limited governmental use of monetary and fiscal policies while conservatives favor a managed economy.

Accepted Answer

A) True 
 B)False

Question 19

The progressive wing of the Democratic Party is committed to government intervention to stabilize the economy. Their policy proposals include the following except:

Accepted Answer

A)  plant closure warnings 
B)  industrial policy 
C)  an increase in the national minimum wage 
D)  decentralization of economic policy 
A)  plant closure warnings 
B)  industrial policy 
C)  an increase in the national minimum wage 
D)  decentralization of economic policy

Question 20

Which of the following U.S. presidents LEFT office with a budget surplus?

Accepted Answer

A)  Jimmy Carter 
B)  Ronald Reagan 
C)  George H.W. Bush 
D)  Bill Clinton 
A)  Jimmy Carter 
B)  Ronald Reagan 
C)  George H.W. Bush 
D)  Bill Clinton

A progressive tax

According to Keynes, the federal government has an obligation to create demand by purchasing goods and services through increased spending.

The "flat tax" proposal would:

During the Clinton Administration (1992-2000) the federal budget deficit

A primary goal of the Fed is to regulate the economy through control over the money supply.

Which of the following is NOT part of fiscal policy?

The annual budget deficit grew from $80 billion in 1981 to $290 billion in 1992. Which of the following was NOT a factor in increasing the deficit?

During the 1980s the national debt

Efficiency was a significant goal of the 1986 Tax Reform Act. It sought to diminish the importance of tax laws in business decision making.

The federal budget began to produce surpluses in 1999.

The United States economy is carrying over $9 trillion in debt. This deficit spending creates two policy problems.

A rise in the price of goods and services while the actual value of the goods and services remains the same is known as

A basic recommendation of "supply-side economics" is:

The Reagan Administration advocated a departure from Keynesian economics to engage in:

Budget deficits reappeared in 2002 as a result of a number of factors. Those factors include all but

Which of the following is true?

In macroeconomic policy, which of the following is/are highly influential?

Progressives tend to favor limited governmental use of monetary and fiscal policies while conservatives favor a managed economy.

The progressive wing of the Democratic Party is committed to government intervention to stabilize the economy. Their policy proposals include the following except:

Which of the following U.S. presidents LEFT office with a budget surplus?

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

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

A progressive tax

According to Keynes, the federal government has an obligation to create demand by purchasing goods and services through increased spending.

The "flat tax" proposal would:

During the Clinton Administration (1992-2000) the federal budget deficit

A primary goal of the Fed is to regulate the economy through control over the money supply.

Which of the following is NOT part of fiscal policy?

The annual budget deficit grew from $80 billion in 1981 to $290 billion in 1992. Which of the following was NOT a factor in increasing the deficit?

During the 1980s the national debt

Efficiency was a significant goal of the 1986 Tax Reform Act. It sought to diminish the importance of tax laws in business decision making.

The federal budget began to produce surpluses in 1999.

The United States economy is carrying over $9 trillion in debt. This deficit spending creates two policy problems.

A rise in the price of goods and services while the actual value of the goods and services remains the same is known as

A basic recommendation of "supply-side economics" is:

The Reagan Administration advocated a departure from Keynesian economics to engage in:

Budget deficits reappeared in 2002 as a result of a number of factors. Those factors include all but

Which of the following is true?

In macroeconomic policy, which of the following is/are highly influential?

Progressives tend to favor limited governmental use of monetary and fiscal policies while conservatives favor a managed economy.

The progressive wing of the Democratic Party is committed to government intervention to stabilize the economy. Their policy proposals include the following except:

Which of the following U.S. presidents LEFT office with a budget surplus?

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