Question 1

According to Arthur Schlesinger, Jr., government spending

Accepted Answer

A)  may grow more slowly during conservative periods, but will never contract. 
B)  follows a natural cycle of increases during liberal periods and decreases during conservative periods. 
C)  grows at the same rate under both liberal and conservative leadership; only the distribution (defense v. civilian) of the spending changes. 
D)  reflects attempts by political leaders to reject the dominant political ideology of their youth. 
A)  may grow more slowly during conservative periods, but will never contract. 
B)  follows a natural cycle of increases during liberal periods and decreases during conservative periods. 
C)  grows at the same rate under both liberal and conservative leadership; only the distribution (defense v. civilian) of the spending changes. 
D)  reflects attempts by political leaders to reject the dominant political ideology of their youth. A

Question 2

Between 1940 and 2005, total government spending as a percentage of GDP nearly doubled.  The primary source of this growth in spending was

Accepted Answer

A)  increases in military expenditures. 
B)  increases in government purchases of goods and services. 
C)  increases in transfer payments. 
D)  increases in the number of federal employees relative to the total labor force. 
A)  increases in military expenditures. 
B)  increases in government purchases of goods and services. 
C)  increases in transfer payments. 
D)  increases in the number of federal employees relative to the total labor force. C

Question 3

Which of the following MOST accurately describes the federal budget between 1960 and 2007?

Accepted Answer

A)  By the end of the period expenditures on health and income security were each greater than expenditures on defense. 
B)  By the end of the period expenditures on health and income security were each lower than expenditures on defense. 
C)  Defense, income security, and health all grew as a percentage of the federal budget. 
D)  As a share of the federal budget expenditures on defense and health grew consistently throughout the period while expenditures on income security fell. 
A)  By the end of the period expenditures on health and income security were each greater than expenditures on defense. 
B)  By the end of the period expenditures on health and income security were each lower than expenditures on defense. 
C)  Defense, income security, and health all grew as a percentage of the federal budget. 
D)  As a share of the federal budget expenditures on defense and health grew consistently throughout the period while expenditures on income security fell. A

Question 4

On what grounds did Michael Edelstein and Robert Higgs suggest that the overall setback of economic growth as a result of defense spending is small?

Accepted Answer

A)  Defense spending came primarily from the private sector. 
B)  Defense spending came in lieu of exports. 
C)  Defense spending mostly replaced consumption rather than investment. 
D)  Defense spending itself was always very small. 
A)  Defense spending came primarily from the private sector. 
B)  Defense spending came in lieu of exports. 
C)  Defense spending mostly replaced consumption rather than investment. 
D)  Defense spending itself was always very small.

Question 5

Which United States President is most closely linked with "The Great Society"?

Accepted Answer

A)  Franklin D. Roosevelt 
B)  Lyndon Johnson 
C)  Richard Nixon 
D)  Ronald Reagan 
A)  Franklin D. Roosevelt 
B)  Lyndon Johnson 
C)  Richard Nixon 
D)  Ronald Reagan

Question 6

Features of "Reagonomics" include all of the following except :

Accepted Answer

A)  reduction in marginal tax rates. 
B)  increased government expenditures for defense. 
C)  deregulation of business. 
D)  regular increases in the minimum wage. 
A)  reduction in marginal tax rates. 
B)  increased government expenditures for defense. 
C)  deregulation of business. 
D)  regular increases in the minimum wage.

Question 7

According to _________, liberal programs survive attempts by conservative administrations to eliminate them because of the "tyranny of the status quo."

Accepted Answer

A)  Arthur Schlesinger, Jr. 
B)  Wagner's Law 
C)  Milton and Rose Friedman 
D)  Robert Higgs 
A)  Arthur Schlesinger, Jr. 
B)  Wagner's Law 
C)  Milton and Rose Friedman 
D)  Robert Higgs

Question 8

A key innovation of the Carter administration (1976-1980) was

Accepted Answer

A)  dramatic expansion of Social Security and Medicare programs. 
B)  large tax cuts, especially for the wealthy. 
C)  deregulation of airlines, trucking, railroads and the financial services industry. 
D)  government control of gasoline and food prices. 
A)  dramatic expansion of Social Security and Medicare programs. 
B)  large tax cuts, especially for the wealthy. 
C)  deregulation of airlines, trucking, railroads and the financial services industry. 
D)  government control of gasoline and food prices.

Question 9

Adolph Wagner wrote that the public sector would continuously and inevitably expand due to

Accepted Answer

A)  bureaucratic self-interest. 
B)  the "tyranny of the status quo". 
C)  labor's increasing demand for social justice. 
D)  increasing demand for military protection from international threats. 
A)  bureaucratic self-interest. 
B)  the "tyranny of the status quo". 
C)  labor's increasing demand for social justice. 
D)  increasing demand for military protection from international threats.

Question 10

Between 1955 and 2006, the federal government purchases of goods and services as a percentage of GDP has:

Accepted Answer

A)  generally trended downward 
B)  Not changed. 
C)  Grown by about 10%. 
D)  Tripled. 
A)  generally trended downward 
B)  Not changed. 
C)  Grown by about 10%. 
D)  Tripled.

Question 11

Why did Allan H. Meltzer and Scott F. Richard not supposed that the poor would automatically vote for "soak the rich" policies in their rational choice model?

Accepted Answer

A)  Poor people lack political insight. 
B)  Poor people do not necessarily realize they are poor. 
C)  Poor people fear that "soak the rich" programs may harm the economy overall. 
D)  Poor people are often lied to by political leaders. 
A)  Poor people lack political insight. 
B)  Poor people do not necessarily realize they are poor. 
C)  Poor people fear that "soak the rich" programs may harm the economy overall. 
D)  Poor people are often lied to by political leaders.

Question 12

The Cold War, or "war on communism,"

Accepted Answer

A)  was the most expensive war of the twentieth century. 
B)  is believed to have caused an increase in defense spending that came at the expense of private consumption rather than private investment. 
C)  is believed to have caused an increase in defense spending that came at the expense of private investment rather than private consumption. 
D)  Both a and b are correct. 
E)  Both a and c are correct. 
A)  was the most expensive war of the twentieth century. 
B)  is believed to have caused an increase in defense spending that came at the expense of private consumption rather than private investment. 
C)  is believed to have caused an increase in defense spending that came at the expense of private investment rather than private consumption. 
D)  Both a and b are correct. 
E)  Both a and c are correct.

Question 13

What most accurately describes the ratio of federal employment of the total labor force between 1910 and 2007?

Accepted Answer

A)  Between 1930 and 1945 the federal labor force grew dramatically, but after World War II it shrank below pre-Depression levels. 
B)  Since 1910, federal employment has increased consistently at the rate of about 3% per year. 
C)  Between 1910 and 1950 federal employment dropped dramatically, but after 1950 it grew consistently. 
D)  The share of federal employment in the total labor force peaked briefly above four percent during the Korean War, and then began a steady decline to about the same level as the 1930s. 
A)  Between 1930 and 1945 the federal labor force grew dramatically, but after World War II it shrank below pre-Depression levels. 
B)  Since 1910, federal employment has increased consistently at the rate of about 3% per year. 
C)  Between 1910 and 1950 federal employment dropped dramatically, but after 1950 it grew consistently. 
D)  The share of federal employment in the total labor force peaked briefly above four percent during the Korean War, and then began a steady decline to about the same level as the 1930s.

Question 14

Between 1965 and 1972, eight major pieces of consumer-protection legislation were enacted.  This burst of legislative activity was largely driven by

Accepted Answer

A)  increased public fears following the thalidomide tragedy. 
B)  public outcry following a series of steamboat explosions. 
C)  a general lack of faith in the market. 
D)  widespread support for the "Reagan Revolution." 
A)  increased public fears following the thalidomide tragedy. 
B)  public outcry following a series of steamboat explosions. 
C)  a general lack of faith in the market. 
D)  widespread support for the "Reagan Revolution."

Question 15

During the three decades immediately following World War II,

Accepted Answer

A)  conservative forces successfully blocked any expansion of New Deal-type programs. 
B)  the prevailing liberal ideology led to the passage of legislation that increased Social Security benefits, created of Medicare, and increased the minimum wage. 
C)  disillusionment with government led to deregulation of airlines and other industries. 
D)  most policy makers and the general public rejected Keynesian policies. 
A)  conservative forces successfully blocked any expansion of New Deal-type programs. 
B)  the prevailing liberal ideology led to the passage of legislation that increased Social Security benefits, created of Medicare, and increased the minimum wage. 
C)  disillusionment with government led to deregulation of airlines and other industries. 
D)  most policy makers and the general public rejected Keynesian policies.

Question 16

Transfer payments include

Accepted Answer

A)  government spending on tanks and planes. 
B)  government spending on national forests and parks. 
C)  the salaries of senators and federal judges. 
D)  welfare benefits and Social Security payments. 
A)  government spending on tanks and planes. 
B)  government spending on national forests and parks. 
C)  the salaries of senators and federal judges. 
D)  welfare benefits and Social Security payments.

Question 17

Which of the following statements would MOST accurately describe government spending between 1970 and 2006?

Accepted Answer

A)  State and local governments spend more on goods and services than the federal government, but the federal government spends more in total than state and local governments. 
B)  As a percentage of GDP, federal government spending on goods and services increased rapidly and by 2006, the federal government spending on goods and services was about twice as high as state spending on goods and services. 
C)  As a percentage of GDP, federal government spending has been significantly reduced, which as forced state and local government total spending to increase dramatically to accommodate these cuts. 
D)  As a percentage of GDP, both federal and state and local government total spending have doubled. 
A)  State and local governments spend more on goods and services than the federal government, but the federal government spends more in total than state and local governments. 
B)  As a percentage of GDP, federal government spending on goods and services increased rapidly and by 2006, the federal government spending on goods and services was about twice as high as state spending on goods and services. 
C)  As a percentage of GDP, federal government spending has been significantly reduced, which as forced state and local government total spending to increase dramatically to accommodate these cuts. 
D)  As a percentage of GDP, both federal and state and local government total spending have doubled.

Question 18

Walton and Rockoff suggest that complementary to the economists' Phillips Curve there is one that is ___________ .

Accepted Answer

A)  cultural 
B)  political 
C)  international 
D)  ecumenical 
A)  cultural 
B)  political 
C)  international 
D)  ecumenical

Question 19

Which of the following was most likely the most costly war the United States had fought?

Accepted Answer

A)  the War of 1812 
B)  the Cold War 
C)  World War I 
D)  World War II 
A)  the War of 1812 
B)  the Cold War 
C)  World War I 
D)  World War II

Question 20

The "Great Society" initiative led to the creation of

Accepted Answer

A)  Medicare. 
B)  Rent subsidies for the poor. 
C)  the Department of Transportation. 
D)  the Department of Housing and Urban Development. 
E)  All of the above. 
A)  Medicare. 
B)  Rent subsidies for the poor. 
C)  the Department of Transportation. 
D)  the Department of Housing and Urban Development. 
E)  All of the above.

Exam 26: The Changing Role of the Federal Government

According to Arthur Schlesinger, Jr., government spending

Between 1940 and 2005, total government spending as a percentage of GDP nearly doubled. The primary source of this growth in spending was

Which of the following MOST accurately describes the federal budget between 1960 and 2007?

On what grounds did Michael Edelstein and Robert Higgs suggest that the overall setback of economic growth as a result of defense spending is small?

Which United States President is most closely linked with "The Great Society"?

Features of "Reagonomics" include all of the following except :

According to _________, liberal programs survive attempts by conservative administrations to eliminate them because of the "tyranny of the status quo."

A key innovation of the Carter administration (1976-1980) was

Adolph Wagner wrote that the public sector would continuously and inevitably expand due to

Between 1955 and 2006, the federal government purchases of goods and services as a percentage of GDP has:

Why did Allan H. Meltzer and Scott F. Richard not supposed that the poor would automatically vote for "soak the rich" policies in their rational choice model?

The Cold War, or "war on communism,"

What most accurately describes the ratio of federal employment of the total labor force between 1910 and 2007?

Between 1965 and 1972, eight major pieces of consumer-protection legislation were enacted. This burst of legislative activity was largely driven by

During the three decades immediately following World War II,

Transfer payments include

Which of the following statements would MOST accurately describe government spending between 1970 and 2006?

Walton and Rockoff suggest that complementary to the economists' Phillips Curve there is one that is ___________ .

Which of the following was most likely the most costly war the United States had fought?

The "Great Society" initiative led to the creation of

Growth, Welfare, and the American Economy

Founding the Colonies

Colonial Economic Activities

The Economic Relations of the Colonies

Economic Progress and Wealth

Three Crises and Revolt

Hard Realities for a New Nation

Land and the Early Westward Movements

Transportation and Market Growth

Market Expansion and Industry in First Transition

Labor During the Early Industrial Period

Money and Banking in the Developing Economy

The Entrenchment of Slavery and Regional Conflict

War, Recovery, and Regional Divergence

Agricultures Western Advance

Railroads and Economic Change

Industrial Expansion and Concentration

The Emergence of Americas Labor Consciousness

Money, Prices, and Finance in the Postbellum Era

Commerce at Home and Abroad

World War I, 1914-1918

The Roaring Twenties

The Great Depression

The New Deal

World War Ii

The Changing Role of the Federal Government: Consumer Safety, Agriculture, the Environment, and Housing

Monetary Policy, Fiscal Policy, and the Business Cycle After World War Ii

Manufacturing, Productivity, and Labor

Achievements of the Past, Challenges for the Future

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