Question 1

Which of the following is NOT an approach devised by policy makers to address climate change?

Accepted Answer

A)  reduction of greenhouse gases 
B)  research and development to promote alternative energy technologies 
C)  measures to promote adaptation to a warmer climate 
D)  fracking to make oil extraction more profitable 
E)  all of the above 
A)  reduction of greenhouse gases 
B)  research and development to promote alternative energy technologies 
C)  measures to promote adaptation to a warmer climate 
D)  fracking to make oil extraction more profitable 
E)  all of the above

Question 2

Which of the following is NOT a benefit to government provided by contracting?

Accepted Answer

A)  Government can acquire services or products at a cheaper rate than if government were to produce them itself. 
B)  Government can use its contracting power to encourage desirable behavior among those businesses that have contracts with the government. 
C)  Government can use contracting to encourage industries, universities, and other organizations to engage in valuable research. 
D)  Government can use contracting to help build up certain segments of the economy. 
E)  Government officials almost always use contracting to award businesses and corporations that donated substantial amounts of money to their political campaigns. 
A)  Government can acquire services or products at a cheaper rate than if government were to produce them itself. 
B)  Government can use its contracting power to encourage desirable behavior among those businesses that have contracts with the government. 
C)  Government can use contracting to encourage industries, universities, and other organizations to engage in valuable research. 
D)  Government can use contracting to help build up certain segments of the economy. 
E)  Government officials almost always use contracting to award businesses and corporations that donated substantial amounts of money to their political campaigns.

Question 3

When did Keynesian economic ideas lead to a revolution in thinking about the role of the government in the economy?

Accepted Answer

A)  the 1890s 
B)  the 1930s 
C)  the 1960s 
D)  the 1980s 
E)  the 1990s 
A)  the 1890s 
B)  the 1930s 
C)  the 1960s 
D)  the 1980s 
E)  the 1990s

Question 4

During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.

Accepted Answer

A)  Adam Smith's 
B)  Milton Friedman's 
C)  Friedrich Hayek's 
D)  John Maynard Keynes's 
E)  David Stockman's 
A)  Adam Smith's 
B)  Milton Friedman's 
C)  Friedrich Hayek's 
D)  John Maynard Keynes's 
E)  David Stockman's

Question 5

________ are government grants of cash or other valuable commodities, such as land, that are used to promote activities desired by government leaders.

Accepted Answer

A)  Contracts 
B)  Tax credits 
C)  Business development funds 
D)  Categorical grants 
E)  Subsidies 
A)  Contracts 
B)  Tax credits 
C)  Business development funds 
D)  Categorical grants 
E)  Subsidies

Question 6

Which of the following statements is true?

Accepted Answer

A)  A majority of Americans believe that taxes are fairly low. 
B)  Republicans in recent decades have supported tax cuts. 
C)  A majority of Americans think that taxes are too high. 
D)  both b and c 
E)  Democrats in recent decades have supported cuts in social spending. 
A)  A majority of Americans believe that taxes are fairly low. 
B)  Republicans in recent decades have supported tax cuts. 
C)  A majority of Americans think that taxes are too high. 
D)  both b and c 
E)  Democrats in recent decades have supported cuts in social spending.

Question 7

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 the right decisions are made regarding deficit spending. 
B)  inflation is always a problem that government officials should attempt to solve. 
C)  inflation is not a problem that government officials should attempt to solve. 
D)  some kinds of public investment, such as military spending on wars, can produce economic growth as a by-product 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 the right decisions are made regarding deficit spending. 
B)  inflation is always a problem that government officials should attempt to solve. 
C)  inflation is not a problem that government officials should attempt to solve. 
D)  some kinds of public investment, such as military spending on wars, can produce economic growth as a by-product of pursuing other more central objectives. 
E)  public investment always reduces economic growth and should therefore be eliminated.

Question 8

________ 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 9

The Securities and Exchange Commission was established

Accepted Answer

A)  at the same time as stocks were publicly bought and sold. 
B)  after the stock market crash of 1929. 
C)  at the same time as the International Monetary Fund. 
D)  after the market crash of 1987. 
E)  after the terrorist attacks of 2001. 
A)  at the same time as stocks were publicly bought and sold. 
B)  after the stock market crash of 1929. 
C)  at the same time as the International Monetary Fund. 
D)  after the market crash of 1987. 
E)  after the terrorist attacks of 2001.

Question 10

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

Accepted Answer

A)  The federal government determines which classes will be taught in colleges and universities but provides no financial assistance for higher education. 
B)  The federal government provides all of the funding for higher education, but state and local governments are placed in charge of operating colleges and universities. 
C)  The federal government supports higher education through educational grants, tax breaks, and loans. 
D)  The federal government is in charge of running the day-to-day operations of every public college and university around the country. 
E)  The federal government plays no role whatsoever in higher education. 
A)  The federal government determines which classes will be taught in colleges and universities but provides no financial assistance for higher education. 
B)  The federal government provides all of the funding for higher education, but state and local governments are placed in charge of operating colleges and universities. 
C)  The federal government supports higher education through educational grants, tax breaks, and loans. 
D)  The federal government is in charge of running the day-to-day operations of every public college and university around the country. 
E)  The federal government plays no role whatsoever in higher education.

Question 11

What is a key power of the Fed?

Accepted Answer

A)  The power to change tax rates. 
B)  The power to lower the budget deficit. 
C)  The power to lower the total national debt. 
D)  The power to expand and contract the amount of credit available in the United States. 
E)  both b and c 
A)  The power to change tax rates. 
B)  The power to lower the budget deficit. 
C)  The power to lower the total national debt. 
D)  The power to expand and contract the amount of credit available in the United States. 
E)  both b and c

Question 12

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

Accepted Answer

A)  permanently increased the reserve requirement. 
B)  lowered the federal funds rate. 
C)  made budget deficits illegal. 
D)  significantly reduced the progressiveness of the federal income tax. 
E)  significantly increased the progressiveness of the federal income tax. 
A)  permanently increased the reserve requirement. 
B)  lowered the federal funds rate. 
C)  made budget deficits illegal. 
D)  significantly reduced the progressiveness of the federal income tax. 
E)  significantly increased the progressiveness of the federal income tax.

Question 13

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

Accepted Answer

A)  raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses. 
B)  lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses. 
C)  take money out of circulation so that the dollar becomes more valuable. 
D)  raise the reserve requirement, restricting the amount of cash and negotiable securities banks must have on hand. 
E)  lower tariffs so that corporations can trade more freely with foreign countries. 
A)  raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses. 
B)  lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses. 
C)  take money out of circulation so that the dollar becomes more valuable. 
D)  raise the reserve requirement, restricting the amount of cash and negotiable securities banks must have on hand. 
E)  lower tariffs so that corporations can trade more freely with foreign countries.

Question 14

Which of the following is NOT a function of the Securities and Exchange Commission?

Accepted Answer

A)  It requires companies to disclose information about the stocks and bonds that they are selling. 
B)  It informs buyers of investment risks. 
C)  It protects the confidentiality of all sales of stocks and bonds. 
D)  It protects investors against fraud. 
E)  It helps the government promote reliable access to new investments through its regulation of financial markets. 
A)  It requires companies to disclose information about the stocks and bonds that they are selling. 
B)  It informs buyers of investment risks. 
C)  It protects the confidentiality of all sales of stocks and bonds. 
D)  It protects investors against fraud. 
E)  It helps the government promote reliable access to new investments through its regulation of financial markets.

Question 15

________ 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 16

The United States has about ________ percent of the world's population and is responsible for ________ percent of its greenhouse gas emissions.

Accepted Answer

A)  1; 5 
B)  10; 25 
C)  5; 45 
D)  20; 60 
E)  25; 10 
A)  1; 5 
B)  10; 25 
C)  5; 45 
D)  20; 60 
E)  25; 10

Question 17

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

Accepted Answer

A)  land grants to railroad companies 
B)  agricultural subsidies 
C)  public works projects 
D)  tariffs 
E)  building roads and canals to tie states and regions together 
A)  land grants to railroad companies 
B)  agricultural subsidies 
C)  public works projects 
D)  tariffs 
E)  building roads and canals to tie states and regions together

Question 18

________ contended with double-digit inflation when he was president.

Accepted Answer

A)  John Kennedy 
B)  Jimmy Carter 
C)  George H. W. Bush 
D)  Bill Clinton 
E)  George W. Bush 
A)  John Kennedy 
B)  Jimmy Carter 
C)  George H. W. Bush 
D)  Bill Clinton 
E)  George W. Bush

Question 19

President ________ rejected the theory of Keynesian economics.

Accepted Answer

A)  John Kennedy 
B)  Lyndon Johnson 
C)  Richard Nixon 
D)  Gerald Ford 
E)  Ronald Reagan 
A)  John Kennedy 
B)  Lyndon Johnson 
C)  Richard Nixon 
D)  Gerald Ford 
E)  Ronald Reagan

Question 20

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

Accepted Answer

A)  They made Americans realize that unemployment was an unfortunate but largely irremediable occurrence. 
B)  They made Americans realize that unemployment could only be solved by a major international crisis, such as a war. 
C)  They showed that the government could help to ensure full employment. 
D)  They showed that the government could only solve unemployment when inflation levels were kept high. 
E)  They showed that ill-advised government programs could cause large increases in unemployment. 
A)  They made Americans realize that unemployment was an unfortunate but largely irremediable occurrence. 
B)  They made Americans realize that unemployment could only be solved by a major international crisis, such as a war. 
C)  They showed that the government could help to ensure full employment. 
D)  They showed that the government could only solve unemployment when inflation levels were kept high. 
E)  They showed that ill-advised government programs could cause large increases in unemployment.

Which of the following is NOT an approach devised by policy makers to address climate change?

Which of the following is NOT a benefit to government provided by contracting?

When did Keynesian economic ideas lead to a revolution in thinking about the role of the government in the economy?

During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.

________ are government grants of cash or other valuable commodities, such as land, that are used to promote activities desired by government leaders.

Which of the following statements is true?

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

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

The Securities and Exchange Commission was established

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

What is a key power of the Fed?

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

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

Which of the following is NOT a function of the Securities and Exchange Commission?

policies are designed to eliminate the abuses of powerful .

The United States has about percent of the world's population and is responsible for percent of its greenhouse gas emissions.

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

________ contended with double-digit inflation when he was president.

President ________ rejected the theory of Keynesian economics.

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

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

Which of the following is NOT an approach devised by policy makers to address climate change?

Which of the following is NOT a benefit to government provided by contracting?

When did Keynesian economic ideas lead to a revolution in thinking about the role of the government in the economy?

During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.

________ are government grants of cash or other valuable commodities, such as land, that are used to promote activities desired by government leaders.

Which of the following statements is true?

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

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

The Securities and Exchange Commission was established

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

What is a key power of the Fed?

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

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

Which of the following is NOT a function of the Securities and Exchange Commission?

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

The United States has about ________ percent of the world's population and is responsible for ________ percent of its greenhouse gas emissions.

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

________ contended with double-digit inflation when he was president.

President ________ rejected the theory of Keynesian economics.

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

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 .

The United States has about percent of the world's population and is responsible for percent of its greenhouse gas emissions.