Exam 16: Making Economic Policy

Government regulation of the economy is often criticized for imposing heavy paperwork and reporting burdens on the economy.

Congress has the primary responsibility for setting interest rates in the United States.

Which of the following most accurately describes the recent financial crisis in the United States?

Are the majority of taxes collected by the government progressive or regressive?

Which of the following is an example of a tax expenditure?

Which of the following is an advantage of deregulation?

If Congress adopts a policy to make cars more fuel efficient,they have adopted a __________.

What is the difference between budget deficits and the national debt?

If you support laissez-faire economic policies,you would generally favor __________.

The Great Depression pitted economists favoring __________ against those favoring __________.

In general,a recession does which of these?

The U.S.Constitution prohibits the use of taxing and spending to influence the national economy.

Corporate income taxes account for the largest share of the federal government's tax revenue.

Discuss some of the key areas of government regulation,and describe three major regulations and/or agencies that have been put in place.

Discuss the historical trend of regulation in the United States.Why do we regulate the economy and economic sectors,and are there any associated costs? Should the United States continue the identified trend? Why or why not?

What is the purpose of deregulation in the American political economy?

The Federal Reserve Board is responsible for fiscal policy.

When members of Congress talk about the ___________,they are talking about the difference between annual government expenditures and revenues.

What are the four stages of the normal business cycle described in the textbook? How does this cycle relate to the current state of the U.S.economy?

Regulatory activities exist to help control the negative effects of economic activity.