Question 1

National defense is an example of a public good.

Accepted Answer

A) True 
 B)False

Question 2

What is the main goal of macroeconomic policy?

Accepted Answer

The main goal of macroeconomic policy is

Question 3

How democratic is economic policy in the United States? That is, do Americans get the economic policies they want from the US government? Why?

Accepted Answer

The question of how democratic economic

Question 4

The objective of macroeconomic policy is to

Accepted Answer

A)  achieve full employment, steady economic growth, and stable prices. 
B)  study the activities of a single sector of the economy. 
C)  integrate the functions of the executive and legislative branches of government in setting economic policy. 
D)  analyze the relationship between the poverty rate and the decline of family values. 
E)  None of the above 
A)  achieve full employment, steady economic growth, and stable prices. 
B)  study the activities of a single sector of the economy. 
C)  integrate the functions of the executive and legislative branches of government in setting economic policy. 
D)  analyze the relationship between the poverty rate and the decline of family values. 
E)  None of the above

Question 5

Which of the following best explains why government regulates?

Accepted Answer

A)  Because the American people have shown that they want the government to fix negative externalities. 
B)  To raise taxes to help pay for the government's operations. 
C)  To redistribute incomes in a way that gives everyone a fair playing field and allows equal opportunity to work. 
D)  To expand the size of government. 
E)  To better control who succeeds and who fails. 
A)  Because the American people have shown that they want the government to fix negative externalities. 
B)  To raise taxes to help pay for the government's operations. 
C)  To redistribute incomes in a way that gives everyone a fair playing field and allows equal opportunity to work. 
D)  To expand the size of government. 
E)  To better control who succeeds and who fails.

Question 6

The national government depends primarily on

Accepted Answer

A)  flat taxes. 
B)  income and payroll taxes. 
C)  consumption taxes. 
D)  national sales taxes. 
E)  investment. 
A)  flat taxes. 
B)  income and payroll taxes. 
C)  consumption taxes. 
D)  national sales taxes. 
E)  investment.

Question 7

The Federal Reserve Board controls the money supply by raising or lowering taxes.

Accepted Answer

A) True 
 B)False

Question 8

Why do governments in all modern capitalist societies play a substantial role in managing their national economies?

Accepted Answer

Governments in modern capitalist societi

Question 9

Examples of a regressive tax in the United States are

Accepted Answer

A)  excise taxes on alcohol. 
B)  social security payroll taxes. 
C)  medicare payroll taxes. 
D)  excise taxes on cigarettes. 
E)  All of the above 
A)  excise taxes on alcohol. 
B)  social security payroll taxes. 
C)  medicare payroll taxes. 
D)  excise taxes on cigarettes. 
E)  All of the above

Question 10

Efficiency is an important component to agenda setting.

Accepted Answer

A) True 
 B)False

Question 11

Local governments get most of their income from property taxes.

Accepted Answer

A) True 
 B)False

Question 12

Government monetary policy has to do with

Accepted Answer

A)  taxing and spending. 
B)  interest rates and the money supply. 
C)  unemployment rates. 
D)  the size of the federal bureaucracy. 
E)  supply and demand. 
A)  taxing and spending. 
B)  interest rates and the money supply. 
C)  unemployment rates. 
D)  the size of the federal bureaucracy. 
E)  supply and demand.

Question 13

From the early 1930s to the early 1980s, the relative spending of the federal government

Accepted Answer

A)  decreased dramatically. 
B)  increased slightly. 
C)  remained constant. 
D)  increased steadily. 
E)  increased dramatically 
A)  decreased dramatically. 
B)  increased slightly. 
C)  remained constant. 
D)  increased steadily. 
E)  increased dramatically

Question 14

Think about a federal spending program. Next, trace it, hypothetically of course, through the several stages of the policy process. Which stage do you think is most important to a policy's ultimate success? Why do you think so?

Accepted Answer

One federal spending program that we can

Question 15

The federal government's role in the economy is so substantial that

Accepted Answer

A)  it is surpassed only by General Motors as the country's largest employer. 
B)  presidents tend to be elected, reelected, or defeated based on the strength of the economy. 
C)  the Supreme Court has severely restricted the president's ability to alter interest rates and the money supply. 
D)  most Americans favor a market economy completely free of government regulation. 
E)  it has been a part of numerous constitutional amendments. 
A)  it is surpassed only by General Motors as the country's largest employer. 
B)  presidents tend to be elected, reelected, or defeated based on the strength of the economy. 
C)  the Supreme Court has severely restricted the president's ability to alter interest rates and the money supply. 
D)  most Americans favor a market economy completely free of government regulation. 
E)  it has been a part of numerous constitutional amendments.

Question 16

The worldwide Great Depression of the 1930s made it clear to most people that the market economy must be free from government regulation or it would collapse.

Accepted Answer

A) True 
 B)False

Question 17

Achieving full employment, steady economic growth, and stable prices is

Accepted Answer

A)  the objective of financial incentives. 
B)  the objective of the gross domestic product. 
C)  the objective of macroeconomic policy. 
D)  the objective of the free market. 
E)  the objective of economic governments. 
A)  the objective of financial incentives. 
B)  the objective of the gross domestic product. 
C)  the objective of macroeconomic policy. 
D)  the objective of the free market. 
E)  the objective of economic governments.

Question 18

The economic theory of regulation holds that

Accepted Answer

A)  big business almost inevitably resists regulation. 
B)  regulation is the end result of liberalism. 
C)  regulation is supported by Republicans but not by Democrats. 
D)  powerful business firms turn to government for protection against competitors. 
E)  None of the above 
A)  big business almost inevitably resists regulation. 
B)  regulation is the end result of liberalism. 
C)  regulation is supported by Republicans but not by Democrats. 
D)  powerful business firms turn to government for protection against competitors. 
E)  None of the above

Question 19

Which of the following is a result of the Federal Reserve Board making money available at lower interest rates to member banks and savings and loans?

Accepted Answer

A)  Individual spending is likely to increase overall. 
B)  Individual spending is likely to stay the same. 
C)  Individual spending is likely to increase but only for lower-income groups. 
D)  Individual spending is likely to decrease. 
E)  Individual spending is always fluctuating and cannot be adjusted. 
A)  Individual spending is likely to increase overall. 
B)  Individual spending is likely to stay the same. 
C)  Individual spending is likely to increase but only for lower-income groups. 
D)  Individual spending is likely to decrease. 
E)  Individual spending is always fluctuating and cannot be adjusted.

Question 20

Effectiveness is

Accepted Answer

A)  an assessment of how well resources are used to meet program objectives. 
B)  an assessment of whether objectives have been met. 
C)  an evaluation of the nuts and bolts of public policy. 
D)  the decisions policymakers make about policy. 
E)  putting a law into effect. 
A)  an assessment of how well resources are used to meet program objectives. 
B)  an assessment of whether objectives have been met. 
C)  an evaluation of the nuts and bolts of public policy. 
D)  the decisions policymakers make about policy. 
E)  putting a law into effect.

National defense is an example of a public good.

What is the main goal of macroeconomic policy?

How democratic is economic policy in the United States? That is, do Americans get the economic policies they want from the US government? Why?

The objective of macroeconomic policy is to

Which of the following best explains why government regulates?

The national government depends primarily on

The Federal Reserve Board controls the money supply by raising or lowering taxes.

Why do governments in all modern capitalist societies play a substantial role in managing their national economies?

Examples of a regressive tax in the United States are

Efficiency is an important component to agenda setting.

Local governments get most of their income from property taxes.

Government monetary policy has to do with

From the early 1930s to the early 1980s, the relative spending of the federal government

Think about a federal spending program. Next, trace it, hypothetically of course, through the several stages of the policy process. Which stage do you think is most important to a policy's ultimate success? Why do you think so?

The federal government's role in the economy is so substantial that

The worldwide Great Depression of the 1930s made it clear to most people that the market economy must be free from government regulation or it would collapse.

Achieving full employment, steady economic growth, and stable prices is

The economic theory of regulation holds that

Which of the following is a result of the Federal Reserve Board making money available at lower interest rates to member banks and savings and loans?

Effectiveness is

Democracy and American Politics

The Constitution

Federalism States and Nations

Structural Foundations of the American Government

Public Opinion

News Media

Interest Groups and Business Corporations

Social Movements

Political Parties

Participation Voting, and Elections

Congress

The President

The Executive Branch

The Courts

Freedom: the Struggle for Civil Liberties

Civil Rights: the Struggle for Political Equality

Social Safety Nets

Foreign Policy and National Defense

Filters

Exam 17: The Budget and Economic Policies

National defense is an example of a public good.

What is the main goal of macroeconomic policy?

How democratic is economic policy in the United States? That is, do Americans get the economic policies they want from the US government? Why?

The objective of macroeconomic policy is to

Which of the following best explains why government regulates?

The national government depends primarily on

The Federal Reserve Board controls the money supply by raising or lowering taxes.

Why do governments in all modern capitalist societies play a substantial role in managing their national economies?

Examples of a regressive tax in the United States are

Efficiency is an important component to agenda setting.

Local governments get most of their income from property taxes.

Government monetary policy has to do with

From the early 1930s to the early 1980s, the relative spending of the federal government

Think about a federal spending program. Next, trace it, hypothetically of course, through the several stages of the policy process. Which stage do you think is most important to a policy's ultimate success? Why do you think so?

The federal government's role in the economy is so substantial that

The worldwide Great Depression of the 1930s made it clear to most people that the market economy must be free from government regulation or it would collapse.

Achieving full employment, steady economic growth, and stable prices is

The economic theory of regulation holds that

Which of the following is a result of the Federal Reserve Board making money available at lower interest rates to member banks and savings and loans?

Effectiveness is

Democracy and American Politics

The Constitution

Federalism States and Nations

Structural Foundations of the American Government

Public Opinion

News Media

Interest Groups and Business Corporations

Social Movements

Political Parties

Participation Voting, and Elections

Congress

The President

The Executive Branch

The Courts

Freedom: the Struggle for Civil Liberties

Civil Rights: the Struggle for Political Equality

Social Safety Nets

Foreign Policy and National Defense

Filters