Question 1

Which of the following statements about the American Recovery and Reinvestment Act of 2009 is true?

Accepted Answer

A)  It was a bipartisan bill. 
B)  Most Republicans supported the bill. 
C)  Most Democrats opposed the bill. 
D)  According to the CBO, the act resulted in the creation of 2 million full-time jobs. 
E)  The act caused the budget deficit to decline. 
A)  It was a bipartisan bill. 
B)  Most Republicans supported the bill. 
C)  Most Democrats opposed the bill. 
D)  According to the CBO, the act resulted in the creation of 2 million full-time jobs. 
E)  The act caused the budget deficit to decline.

Question 2

From the perspective of members of Congress, what was the principal cause of the economic recession of 2008?

Accepted Answer

A)  too much government spending on social welfare programs 
B)  not enough government spending on social welfare programs 
C)  the high prices Americans pay for health care and health insurance 
D)  excessive risk taking by investors 
E)  too much government regulation 
A)  too much government spending on social welfare programs 
B)  not enough government spending on social welfare programs 
C)  the high prices Americans pay for health care and health insurance 
D)  excessive risk taking by investors 
E)  too much government regulation

Question 3

The power to raise or lower the tax rate is part of ________.

Accepted Answer

A)  fiscal policy 
B)  monetary policy 
C)  the contracting power 
D)  discretionary spending policy 
E)  budgetary policy 
A)  fiscal policy 
B)  monetary policy 
C)  the contracting power 
D)  discretionary spending policy 
E)  budgetary policy

Question 4

Supply-side economics is the idea that

Accepted Answer

A)  the best method of producing high levels of economic growth is to engage in high levels of government spending. 
B)  the government should impose heavy tariffs on imported goods in order to protect domestic suppliers. 
C)  the government's role in the economy should be strictly limited to regulating the supply of money. 
D)  increasing the marginal rate of taxation will create a productive economy by providing more revenue to finance government economic programs. 
E)  reducing the marginal rate of taxation will create a productive economy by promoting levels of work and investment that would otherwise be discouraged by higher taxes. 
A)  the best method of producing high levels of economic growth is to engage in high levels of government spending. 
B)  the government should impose heavy tariffs on imported goods in order to protect domestic suppliers. 
C)  the government's role in the economy should be strictly limited to regulating the supply of money. 
D)  increasing the marginal rate of taxation will create a productive economy by providing more revenue to finance government economic programs. 
E)  reducing the marginal rate of taxation will create a productive economy by promoting levels of work and investment that would otherwise be discouraged by higher taxes.

Question 5

Sales taxes are ________, and most income taxes are ________.

Accepted Answer

A)  regressive; regressive 
B)  progressive; progressive 
C)  progressive; regressive 
D)  regressive; progressive 
E)  high; low 
A)  regressive; regressive 
B)  progressive; progressive 
C)  progressive; regressive 
D)  regressive; progressive 
E)  high; low

Question 6

The recession of 2008 led to the loss of ________ million American jobs.

Accepted Answer

A)  1 
B)  5 
C)  8 
D)  16 
E)  25 
A)  1 
B)  5 
C)  8 
D)  16 
E)  25

Question 7

The ________ is determined by the amount by which government spending exceeds government revenue in a fiscal year.

Accepted Answer

A)  budget deficit 
B)  inflation rate 
C)  gross domestic product 
D)  reserve requirement 
E)  gross national product 
A)  budget deficit 
B)  inflation rate 
C)  gross domestic product 
D)  reserve requirement 
E)  gross national product

Question 8

Setting emissions standards for each industry, while allowing companies to trade "carbon credits," is an approach to environmental policy known as ________.

Accepted Answer

A)  cap and trade 
B)  the green alternative 
C)  NIMBY 
D)  the Wall Street cooler 
E)  the Gore protocol 
A)  cap and trade 
B)  the green alternative 
C)  NIMBY 
D)  the Wall Street cooler 
E)  the Gore protocol

Question 9

The minimum wage was first enacted in ________.

Accepted Answer

A)  1879 
B)  1901 
C)  1938 
D)  1962 
E)  1995 
A)  1879 
B)  1901 
C)  1938 
D)  1962 
E)  1995

Question 10

Upton Sinclair's 1906 exposé, The Jungle, revealed the

Accepted Answer

A)  widespread use of child labor in coal mines and factories throughout the United States. 
B)  violent suppression of labor unions by big business. 
C)  control of politicians by corporate interests who run the political machines. 
D)  unsanitary practices at meatpacking plants. 
E)  violent uprisings of union members across the United States. 
A)  widespread use of child labor in coal mines and factories throughout the United States. 
B)  violent suppression of labor unions by big business. 
C)  control of politicians by corporate interests who run the political machines. 
D)  unsanitary practices at meatpacking plants. 
E)  violent uprisings of union members across the United States.

Question 11

There is wide disagreement about the degree to which government should be involved in the economy and for what reasons. Describe the following competing theories about the proper role of government in the economy: laissez-faire, Keynesian, and supply-side economics. For each theory, explain what is perceived as the ideal role of government. What are some of the practical problems with each theory?

Accepted Answer

Laissez-faire economics is a theory that

Question 12

Which of the following does the Small Business Administration provide?

Accepted Answer

A)  insurance 
B)  legal counsel 
C)  disaster assistance 
D)  subsidies 
E)  grants 
A)  insurance 
B)  legal counsel 
C)  disaster assistance 
D)  subsidies 
E)  grants

Which of the following statements about the American Recovery and Reinvestment Act of 2009 is true?

From the perspective of members of Congress, what was the principal cause of the economic recession of 2008?

The power to raise or lower the tax rate is part of ________.

Supply-side economics is the idea that

Sales taxes are , and most income taxes are .

The recession of 2008 led to the loss of ________ million American jobs.

The ________ is determined by the amount by which government spending exceeds government revenue in a fiscal year.

Setting emissions standards for each industry, while allowing companies to trade "carbon credits," is an approach to environmental policy known as ________.

The minimum wage was first enacted in ________.

Upton Sinclair's 1906 exposé, The Jungle, revealed the

Which of the following does the Small Business Administration provide?

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 statements about the American Recovery and Reinvestment Act of 2009 is true?

From the perspective of members of Congress, what was the principal cause of the economic recession of 2008?

The power to raise or lower the tax rate is part of ________.

Supply-side economics is the idea that

Sales taxes are ________, and most income taxes are ________.

The recession of 2008 led to the loss of ________ million American jobs.

The ________ is determined by the amount by which government spending exceeds government revenue in a fiscal year.

Setting emissions standards for each industry, while allowing companies to trade "carbon credits," is an approach to environmental policy known as ________.

The minimum wage was first enacted in ________.

Upton Sinclair's 1906 exposé, The Jungle, revealed the

Which of the following does the Small Business Administration provide?

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

Sales taxes are , and most income taxes are .