Question 1

Classic laissez-faire theory is based on all of the following EXCEPT that

Accepted Answer

A)  government monopolies depress economic growth. 
B)  people's selfishness can promote the public good. 
C)  a truly efficient government allows private enterprise to provide all government services. 
D)  economic competition unleashes growth and innovation. 
E)  government should stay out of the private sector except when providing a select number of public goods. 
A)  government monopolies depress economic growth. 
B)  people's selfishness can promote the public good. 
C)  a truly efficient government allows private enterprise to provide all government services. 
D)  economic competition unleashes growth and innovation. 
E)  government should stay out of the private sector except when providing a select number of public goods.

Question 2

During the nineteenth century, the federal government received most of its revenue from ________.

Accepted Answer

A)  corporate taxes 
B)  personal income taxes 
C)  social insurance taxes 
D)  state and local governments 
E)  tariffs 
A)  corporate taxes 
B)  personal income taxes 
C)  social insurance taxes 
D)  state and local governments 
E)  tariffs

Question 3

A way to reduce the disparities in wealth between the rich and poor is called a(n) ________.

Accepted Answer

A)  entitlement program 
B)  tariff 
C)  regressive tax policy 
D)  policy of redistribution 
E)  loophole 
A)  entitlement program 
B)  tariff 
C)  regressive tax policy 
D)  policy of redistribution 
E)  loophole

Question 4

Which of the following is NOT one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?

Accepted Answer

A)  Compliance with environmental regulations can be very costly. 
B)  Federal environmental standards are often set too high. 
C)  Who should bear the costs of providing environmental benefits? 
D)  Scientific evidence can change making some environmental regulations obsolete. 
E)  Public opinion overwhelmingly favors economic interests over the environment. 
A)  Compliance with environmental regulations can be very costly. 
B)  Federal environmental standards are often set too high. 
C)  Who should bear the costs of providing environmental benefits? 
D)  Scientific evidence can change making some environmental regulations obsolete. 
E)  Public opinion overwhelmingly favors economic interests over the environment.

Question 5

Today, labor unions represent about ________ percent of the labor force.

Accepted Answer

A)  50 
B)  35 
C)  25 
D)  11 
E)  3 
A)  50 
B)  35 
C)  25 
D)  11 
E)  3

Question 6

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

Accepted Answer

A)  Spending on mandatory programs increased between 1962 and 1990 but has decreased dramatically since 1990. 
B)  Spending on mandatory programs decreased between 1962 and 1990 but has increased dramatically since 1990. 
C)  Spending on mandatory programs has remained constant since 1970. 
D)  Spending on mandatory programs has grown dramatically since 1970. 
E)  Spending on mandatory programs has declined dramatically since 1970. 
A)  Spending on mandatory programs increased between 1962 and 1990 but has decreased dramatically since 1990. 
B)  Spending on mandatory programs decreased between 1962 and 1990 but has increased dramatically since 1990. 
C)  Spending on mandatory programs has remained constant since 1970. 
D)  Spending on mandatory programs has grown dramatically since 1970. 
E)  Spending on mandatory programs has declined dramatically since 1970.

Question 7

Why have politicians always favored using subsidies to promote certain economic activities?

Accepted Answer

A)  They can be treated as benefits that can be widely spread in response to many demands. 
B)  They are generally cheaper than other forms of government support. 
C)  Recipients are always required to pay back the subsidies. 
D)  Congress does not have to pass legislation in order to provide subsidies. 
E)  They are paid for through international tariffs rather than personal income taxes. 
A)  They can be treated as benefits that can be widely spread in response to many demands. 
B)  They are generally cheaper than other forms of government support. 
C)  Recipients are always required to pay back the subsidies. 
D)  Congress does not have to pass legislation in order to provide subsidies. 
E)  They are paid for through international tariffs rather than personal income taxes.

Question 8

________ film, An Inconvenient Truth, attracted broad attention to the issue of climate change in 2006.

Accepted Answer

A)  Bill Clinton's 
B)  George W. Bush's 
C)  Bob Dole's 
D)  Al Gore's 
E)  John McCain's 
A)  Bill Clinton's 
B)  George W. Bush's 
C)  Bob Dole's 
D)  Al Gore's 
E)  John McCain's

Question 9

Open-market operations describe the

Accepted Answer

A)  government policy, beginning in the 1950s, of reducing tariffs on foreign products. 
B)  requirement that publicly owned businesses honestly report their earnings and losses. 
C)  method by which the Federal Reserve buys and sells government securities to increase or decrease the supply of money in the economy. 
D)  policy of deregulation pursued during the 1980s by the Reagan administration. 
E)  way in which the U.S. government purchases stocks and bonds from foreign corporations. 
A)  government policy, beginning in the 1950s, of reducing tariffs on foreign products. 
B)  requirement that publicly owned businesses honestly report their earnings and losses. 
C)  method by which the Federal Reserve buys and sells government securities to increase or decrease the supply of money in the economy. 
D)  policy of deregulation pursued during the 1980s by the Reagan administration. 
E)  way in which the U.S. government purchases stocks and bonds from foreign corporations.

Question 10

The ________ insures bank deposits up to $250,000.

Accepted Answer

A)  Federal Reserve Board 
B)  Federal Deposit Insurance Corporation 
C)  U.S. Department of Treasury 
D)  Office of Management and Budget 
E)  Council of Economic Advisors 
A)  Federal Reserve Board 
B)  Federal Deposit Insurance Corporation 
C)  U.S. Department of Treasury 
D)  Office of Management and Budget 
E)  Council of Economic Advisors

Question 11

Which of the following was NOT one of the goals of the American Recovery and Reinvestment Act of 2009?

Accepted Answer

A)  encourage economic growth 
B)  develop weatherization projects and clean technology construction 
C)  save existing jobs that might be lost due to the economic recession 
D)  provide for a national health care system 
E)  make longer-term investments to encourage job creation 
A)  encourage economic growth 
B)  develop weatherization projects and clean technology construction 
C)  save existing jobs that might be lost due to the economic recession 
D)  provide for a national health care system 
E)  make longer-term investments to encourage job creation

Question 12

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

Accepted Answer

A)  farm price supports 
B)  Social Security payments 
C)  defense spending 
D)  Medicare 
E)  interest payments on the national debt 
A)  farm price supports 
B)  Social Security payments 
C)  defense spending 
D)  Medicare 
E)  interest payments on the national debt

Question 13

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Accepted Answer

A)  control discretionary spending. 
B)  deregulate the economy. 
C)  regulate large businesses that establish monopolies. 
D)  control mandatory spending. 
E)  close tax loopholes. 
A)  control discretionary spending. 
B)  deregulate the economy. 
C)  regulate large businesses that establish monopolies. 
D)  control mandatory spending. 
E)  close tax loopholes.

Question 14

Describe some of the different tools and techniques that federal officials have at their disposal for regulating economic policy. What are monetary policies and fiscal policies? What are other ways in which government leaders can encourage or compel business representatives to behave in certain ways?

Accepted Answer

Federal officials have a variety of tool

Question 15

Which of the following statements is true?

Accepted Answer

A)  Democrats support higher levels of public spending than Republicans. 
B)  Republicans' support for tax cuts creates a political dilemma for Democrats. 
C)  Democrats support raising taxes on the wealthy. 
D)  Republicans believe that government spending is wasteful and puts a drag on the economy. 
E)  all of the above 
A)  Democrats support higher levels of public spending than Republicans. 
B)  Republicans' support for tax cuts creates a political dilemma for Democrats. 
C)  Democrats support raising taxes on the wealthy. 
D)  Republicans believe that government spending is wasteful and puts a drag on the economy. 
E)  all of the above

Question 16

In order to have reliable information about the costs and impact of economic policies, Congress created the ________.

Accepted Answer

A)  Federal Reserve Board 
B)  Office of Management and Budget 
C)  Congressional Budget Office 
D)  Congressional Oversight Commission 
E)  Congressional Research Service 
A)  Federal Reserve Board 
B)  Office of Management and Budget 
C)  Congressional Budget Office 
D)  Congressional Oversight Commission 
E)  Congressional Research Service

Question 17

________ were the centerpiece of George W. Bush's economic policy.

Accepted Answer

A)  Protective tariffs 
B)  Tax cuts 
C)  Antiglobalization measures 
D)  Agriculture subsidies 
E)  Categorical grants 
A)  Protective tariffs 
B)  Tax cuts 
C)  Antiglobalization measures 
D)  Agriculture subsidies 
E)  Categorical grants

Question 18

Most of the groundbreaking environmental laws were written in the ________.

Accepted Answer

A)  1950s 
B)  1970s 
C)  1980s 
D)  1990s 
E)  2000s 
A)  1950s 
B)  1970s 
C)  1980s 
D)  1990s 
E)  2000s

Question 19

Before World War II, ________ of federal revenue was generated from individual income taxes.

Accepted Answer

A)  less than 15 percent 
B)  a quarter 
C)  half 
D)  80 percent 
E)  100 percent 
A)  less than 15 percent 
B)  a quarter 
C)  half 
D)  80 percent 
E)  100 percent

Question 20

A ________ is an incentive in the tax code for individuals and corporations to invest their money in ways that government officials desire in exchange for a reduction in tax liabilities.

Accepted Answer

A)  categorical grant 
B)  loophole 
C)  federal funds rate 
D)  block grant 
E)  subsidy 
A)  categorical grant 
B)  loophole 
C)  federal funds rate 
D)  block grant 
E)  subsidy

Classic laissez-faire theory is based on all of the following EXCEPT that

During the nineteenth century, the federal government received most of its revenue from ________.

A way to reduce the disparities in wealth between the rich and poor is called a(n) ________.

Which of the following is NOT one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?

Today, labor unions represent about ________ percent of the labor force.

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

Why have politicians always favored using subsidies to promote certain economic activities?

________ film, An Inconvenient Truth, attracted broad attention to the issue of climate change in 2006.

Open-market operations describe the

The ________ insures bank deposits up to $250,000.

Which of the following was NOT one of the goals of the American Recovery and Reinvestment Act of 2009?

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

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Which of the following statements is true?

In order to have reliable information about the costs and impact of economic policies, Congress created the ________.

________ were the centerpiece of George W. Bush's economic policy.

Most of the groundbreaking environmental laws were written in the ________.

Before World War II, ________ of federal revenue was generated from individual income taxes.

A ________ is an incentive in the tax code for individuals and corporations to invest their money in ways that government officials desire in exchange for a reduction in tax liabilities.

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

Classic laissez-faire theory is based on all of the following EXCEPT that

During the nineteenth century, the federal government received most of its revenue from ________.

A way to reduce the disparities in wealth between the rich and poor is called a(n) ________.

Which of the following is NOT one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?

Today, labor unions represent about ________ percent of the labor force.

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

Why have politicians always favored using subsidies to promote certain economic activities?

________ film, An Inconvenient Truth, attracted broad attention to the issue of climate change in 2006.

Open-market operations describe the

The ________ insures bank deposits up to $250,000.

Which of the following was NOT one of the goals of the American Recovery and Reinvestment Act of 2009?

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

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Which of the following statements is true?

In order to have reliable information about the costs and impact of economic policies, Congress created the ________.

________ were the centerpiece of George W. Bush's economic policy.

Most of the groundbreaking environmental laws were written in the ________.

Before World War II, ________ of federal revenue was generated from individual income taxes.

A ________ is an incentive in the tax code for individuals and corporations to invest their money in ways that government officials desire in exchange for a reduction in tax liabilities.

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