Question 1

Which of the following statements is true about macroeconomics and U.S. government

Accepted Answer

A)  Fiscal policy is the primary tool of macroeconomic policy. 
B)  Monetary policy is the primary tool of macroeconomic policy. 
C)  The Federal Reserve Board plays a limited role over monetary policy. 
D)  Fiscal and monetary policies are both important tools of macroeconomic policy. 
E)  All of the above 
A)  Fiscal policy is the primary tool of macroeconomic policy. 
B)  Monetary policy is the primary tool of macroeconomic policy. 
C)  The Federal Reserve Board plays a limited role over monetary policy. 
D)  Fiscal and monetary policies are both important tools of macroeconomic policy. 
E)  All of the above

Question 2

What does the federal government spend its money on? How do U.S. government spending patterns compare to those of other modern nations?

Accepted Answer

The federal government spends its money

Question 3

Public policy

Accepted Answer

A)  directs benefits to a narrowly defined group or individual. 
B)  is a decision made by government that creates laws, programs, and regulations. 
C)  always transfers resources from one group to another. 
D)  frames the issues before Congress and the presidency. 
E)  involves the discussion of how to benefit the most for electoral benefits. 
A)  directs benefits to a narrowly defined group or individual. 
B)  is a decision made by government that creates laws, programs, and regulations. 
C)  always transfers resources from one group to another. 
D)  frames the issues before Congress and the presidency. 
E)  involves the discussion of how to benefit the most for electoral benefits.

Question 4

Most economists believe that recessions are explained by political influences, not the normal business cycle.

Accepted Answer

A) True 
 B)False

Question 5

Examples of a progressive 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)  federal income taxes. 
A)  excise taxes on alcohol. 
B)  social security payroll taxes. 
C)  medicare payroll taxes. 
D)  excise taxes on cigarettes. 
E)  federal income taxes.

Question 6

Combining all federal taxes, Americans pay about ________ of their income in taxes.

Accepted Answer

A)  18 percent 
B)  32 percent 
C)  50 percent 
D)  65 percent E0 75 percent 
A)  18 percent 
B)  32 percent 
C)  50 percent 
D)  65 percent E0 75 percent

Question 7

______________ tax rates increase as wealth and income increase.

Accepted Answer

A)  Progressive 
B)  Property 
C)  Regressive 
D)  Sales tax 
E)  Income 
A)  Progressive 
B)  Property 
C)  Regressive 
D)  Sales tax 
E)  Income

Question 8

A recession refers to a period of increase in overall economic activity.

Accepted Answer

A) True 
 B)False

Question 9

How does the Federal Reserve Board influence the supply of money in the economy?

Accepted Answer

A)  By changing the discount rate. 
B)  By increasing spending. 
C)  By increasing taxes. 
D)  By allocating more funds to state banks. 
E)  By printing or destroying currency. 
A)  By changing the discount rate. 
B)  By increasing spending. 
C)  By increasing taxes. 
D)  By allocating more funds to state banks. 
E)  By printing or destroying currency.

Question 10

Economist John Maynard Keynes called on government to

Accepted Answer

A)  engage in national strategic planning to guide investment to high-technology sectors and away from outmoded industries. 
B)  increase the supply of goods and services in the economy by removing barriers to individual investment and entrepreneurship. 
C)  use the central bank to set and enforce long-range targets for growth in the money supply that matches the rate of growth in productivity. 
D)  increase government spending or cut taxes during economic downturns to stimulate productivity and increase money in circulation. 
E)  focus on keeping inflation in check by raising and lowering interest rates. 
A)  engage in national strategic planning to guide investment to high-technology sectors and away from outmoded industries. 
B)  increase the supply of goods and services in the economy by removing barriers to individual investment and entrepreneurship. 
C)  use the central bank to set and enforce long-range targets for growth in the money supply that matches the rate of growth in productivity. 
D)  increase government spending or cut taxes during economic downturns to stimulate productivity and increase money in circulation. 
E)  focus on keeping inflation in check by raising and lowering interest rates.

Question 11

What is the largest portion of the federal budget used for?

Accepted Answer

A)  Mandatory spending 
B)  The military 
C)  Homeland security 
D)  Education and training 
E)  Scientific and medical research 
A)  Mandatory spending 
B)  The military 
C)  Homeland security 
D)  Education and training 
E)  Scientific and medical research

Question 12

Implementation is putting a law into effect.

Accepted Answer

A) True 
 B)False

Question 13

The ________ is the federal institution that makes monetary policy for the nation.

Accepted Answer

Federal Re

Question 14

________ play a substantial role in managing and directing their economies.

Accepted Answer

A)  Very few governments in foreign countries 
B)  Only socialist governments 
C)  Governments in all modern capitalist societies 
D)  Most governments in foreign countries, unlike that of the United States, 
E)  Capitalism does not allow governments to 
A)  Very few governments in foreign countries 
B)  Only socialist governments 
C)  Governments in all modern capitalist societies 
D)  Most governments in foreign countries, unlike that of the United States, 
E)  Capitalism does not allow governments to

Question 15

New growth theory

Accepted Answer

A)  is premised on the idea of controlling the money supply to increase economic growth. 
B)  is associated with the idea that the economy works best when reins on the free market are loosened. 
C)  holds that long-term growth comes from invention and innovation. 
D)  accepts the role of governmental regulation in the growth of the economy. 
E)  is no longer accepted by economists. 
A)  is premised on the idea of controlling the money supply to increase economic growth. 
B)  is associated with the idea that the economy works best when reins on the free market are loosened. 
C)  holds that long-term growth comes from invention and innovation. 
D)  accepts the role of governmental regulation in the growth of the economy. 
E)  is no longer accepted by economists.

Question 16

According to the authors of your text, what are the stages of the policy process?

Accepted Answer

Agenda setting, deci

Question 17

The largest culprit of the budget deficit is

Accepted Answer

A)  national defense spending. 
B)  mandatory expenditures. 
C)  discretionary spending. 
D)  pork-barrel projects. 
E)  grants to states. 
A)  national defense spending. 
B)  mandatory expenditures. 
C)  discretionary spending. 
D)  pork-barrel projects. 
E)  grants to states.

Question 18

A depression is defined by economists as

Accepted Answer

A)  a long-lasting, deep recession with low profits of business. 
B)  two quarters of economic contraction. 
C)  four quarters of economic contraction. 
D)  a condition of rising prices. 
E)  an increase in interest rates. 
A)  a long-lasting, deep recession with low profits of business. 
B)  two quarters of economic contraction. 
C)  four quarters of economic contraction. 
D)  a condition of rising prices. 
E)  an increase in interest rates.

Question 19

Which of the following did the Federal Reserve Board do to address economic difficulties in 2007 and 2008?

Accepted Answer

A)  Aggressive cuts in interest rates. 
B)  Increases in interest rates. 
C)  Encourage Congress to increase spending. 
D)  Push the president to cut taxes. 
E)  Argued in favor of additional governmental regulation of the stock market. 
A)  Aggressive cuts in interest rates. 
B)  Increases in interest rates. 
C)  Encourage Congress to increase spending. 
D)  Push the president to cut taxes. 
E)  Argued in favor of additional governmental regulation of the stock market.

Question 20

The total of what government owes is called the

Accepted Answer

A)  deficit. 
B)  revenue stream. 
C)  national debt. 
D)  expenditure shortfall. 
E)  national revenue overshoot. 
A)  deficit. 
B)  revenue stream. 
C)  national debt. 
D)  expenditure shortfall. 
E)  national revenue overshoot.

Which of the following statements is true about macroeconomics and U.S. government

What does the federal government spend its money on? How do U.S. government spending patterns compare to those of other modern nations?

Public policy

Most economists believe that recessions are explained by political influences, not the normal business cycle.

Examples of a progressive tax in the United States are

Combining all federal taxes, Americans pay about ________ of their income in taxes.

______________ tax rates increase as wealth and income increase.

A recession refers to a period of increase in overall economic activity.

How does the Federal Reserve Board influence the supply of money in the economy?

Economist John Maynard Keynes called on government to

What is the largest portion of the federal budget used for?

Implementation is putting a law into effect.

The ________ is the federal institution that makes monetary policy for the nation.

________ play a substantial role in managing and directing their economies.

New growth theory

According to the authors of your text, what are the stages of the policy process?

The largest culprit of the budget deficit is

A depression is defined by economists as

Which of the following did the Federal Reserve Board do to address economic difficulties in 2007 and 2008?

The total of what government owes is called the

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

Which of the following statements is true about macroeconomics and U.S. government

What does the federal government spend its money on? How do U.S. government spending patterns compare to those of other modern nations?

Public policy

Most economists believe that recessions are explained by political influences, not the normal business cycle.

Examples of a progressive tax in the United States are

Combining all federal taxes, Americans pay about ________ of their income in taxes.

______________ tax rates increase as wealth and income increase.

A recession refers to a period of increase in overall economic activity.

How does the Federal Reserve Board influence the supply of money in the economy?

Economist John Maynard Keynes called on government to

What is the largest portion of the federal budget used for?

Implementation is putting a law into effect.

The ________ is the federal institution that makes monetary policy for the nation.

________ play a substantial role in managing and directing their economies.

New growth theory

According to the authors of your text, what are the stages of the policy process?

The largest culprit of the budget deficit is

A depression is defined by economists as

Which of the following did the Federal Reserve Board do to address economic difficulties in 2007 and 2008?

The total of what government owes is called the

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