Question 1

The Fair Labor Standards Act of 1938 requires that most workers employed under contracts with the federal government be paid at least the average wage for that job.

Accepted Answer

A) True 
 B)False  False

Question 2

Deregulation is the policy of erecting trade barriers to protect domestic industry.

Accepted Answer

A) True 
 B)False  False

Question 3

The stages of the normal business cycle are expansion, contraction, recession, and recovery.

Accepted Answer

A) True 
 B)False  True

Question 4

According to the Constitution, the authority to regulate commerce between states and with foreign nations is held by the U.S.Trade Office.

Accepted Answer

A) True 
 B)False

Question 5

The World Trade Organization was derived from NAFTA to promote free trade.

Accepted Answer

A) True 
 B)False

Question 6

The amount of interest banks charge for loans to each other is known as the federal reserve requirement.

Accepted Answer

A) True 
 B)False

Question 7

______________________________ are federal laws that try to prevent a monopoly from dominating an industry and restraining trade.

Accepted Answer

A) Antitrust legislation 
B) Anti-dumping statutes 
C) Restrictive trade legislation 
D) Unlimited competition statutes 
E) Regulatory practices legislation 
A) Antitrust legislation 
B) Anti-dumping statutes 
C) Restrictive trade legislation 
D) Unlimited competition statutes 
E) Regulatory practices legislation

Question 8

The core element of monetary policy is the idea that prices, incomes, and economic stability reflect growth in the amount of money that circulates through the economy at any one time.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following economic policy-making powers is held by the president?

Accepted Answer

A) The power to borrow money 
B) The power to regulate commerce with foreign countries 
C) The power to negotiate treaties 
D) The power to print money 
E) All of the above 
A) The power to borrow money 
B) The power to regulate commerce with foreign countries 
C) The power to negotiate treaties 
D) The power to print money 
E) All of the above

Question 10

Domination of an industry by a single company is known as

Accepted Answer

A) oligarchy. 
B) dumping. 
C) monopoly. 
D) regulation. 
E) corporatism. 
A) oligarchy. 
B) dumping. 
C) monopoly. 
D) regulation. 
E) corporatism.

Question 11

The economist who first urged that government should fill any gaps left by a deficit of private spending and investment was

Accepted Answer

A) Adam Smith. 
B) John K.Galbraith. 
C) John M.Keynes. 
D) Paul Samuelson. 
E) Ronald Reagan 
A) Adam Smith. 
B) John K.Galbraith. 
C) John M.Keynes. 
D) Paul Samuelson. 
E) Ronald Reagan

Question 12

An imbalance in international trade in which the value of imports exceeds the value of exports is called a(n)

Accepted Answer

A) exchange rate adjustment. 
B) regulatory regime. 
C) unfair tariff. 
D) monopoly. 
E) trade deficit. 
A) exchange rate adjustment. 
B) regulatory regime. 
C) unfair tariff. 
D) monopoly. 
E) trade deficit.

Question 13

Inflation is usually a more serious danger during periods of economic

Accepted Answer

A) expansion. 
B) contraction. 
C) uncertainty. 
D) volatility. 
E) None of the above 
A) expansion. 
B) contraction. 
C) uncertainty. 
D) volatility. 
E) None of the above

Question 14

The _________________ is an agency of Congress that analyzes presidential budget recommendations and estimates the costs of proposed legislation.

Accepted Answer

A) Joint Committee on the Budget 
B) Office of Management and Budget 
C) Legislative Research Commission 
D) Congressional Budget Office 
E) Permanent Task Force on Revenue and Appropriations 
A) Joint Committee on the Budget 
B) Office of Management and Budget 
C) Legislative Research Commission 
D) Congressional Budget Office 
E) Permanent Task Force on Revenue and Appropriations

Question 15

When the government runs a budget deficit it must make up for the shortfall in revenues by

Accepted Answer

A) increasing spending. 
B) borrowing. 
C) cutting taxes. 
D) increasing unemployment. 
E) maintaining inflation. 
A) increasing spending. 
B) borrowing. 
C) cutting taxes. 
D) increasing unemployment. 
E) maintaining inflation.

Question 16

The international organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes free trade around the world is the

Accepted Answer

A) United Nations. 
B) World Protectionism Agency. 
C) International Association of Trade Partners. 
D) World Trade Organization. 
E) Global Free Trade Regime. 
A) United Nations. 
B) World Protectionism Agency. 
C) International Association of Trade Partners. 
D) World Trade Organization. 
E) Global Free Trade Regime.

Question 17

The process of private corporations moving jobs to other countries is known as

Accepted Answer

A) offshoring. 
B) exporting. 
C) packing up. 
D) relocation. 
E) treason. 
A) offshoring. 
B) exporting. 
C) packing up. 
D) relocation. 
E) treason.

Question 18

The Occupational Safety and Health Act is mainly concerned with

Accepted Answer

A) industrial safety. 
B) nuclear power plants. 
C) air and water pollution. 
D) minimum hourly wages. 
E) health care 
A) industrial safety. 
B) nuclear power plants. 
C) air and water pollution. 
D) minimum hourly wages. 
E) health care

Question 19

The Environmental Protection Agency was founded in the

Accepted Answer

A) 1940s. 
B) 1950s. 
C) 1960s. 
D) 1970s. 
E) 1980s. 
A) 1940s. 
B) 1950s. 
C) 1960s. 
D) 1970s. 
E) 1980s.

Question 20

Inflation is measured using

Accepted Answer

A) international exchange rates. 
B) the gross domestic product. 
C) the consumer price index. 
D) the unemployment rate. 
E) the annual growth rate. 
A) international exchange rates. 
B) the gross domestic product. 
C) the consumer price index. 
D) the unemployment rate. 
E) the annual growth rate.

Exam 18: Making Economic Policy

The Fair Labor Standards Act of 1938 requires that most workers employed under contracts with the federal government be paid at least the average wage for that job.

Deregulation is the policy of erecting trade barriers to protect domestic industry.

The stages of the normal business cycle are expansion, contraction, recession, and recovery.

According to the Constitution, the authority to regulate commerce between states and with foreign nations is held by the U.S.Trade Office.

The World Trade Organization was derived from NAFTA to promote free trade.

The amount of interest banks charge for loans to each other is known as the federal reserve requirement.

______________________________ are federal laws that try to prevent a monopoly from dominating an industry and restraining trade.

The core element of monetary policy is the idea that prices, incomes, and economic stability reflect growth in the amount of money that circulates through the economy at any one time.

Which of the following economic policy-making powers is held by the president?

Domination of an industry by a single company is known as

The economist who first urged that government should fill any gaps left by a deficit of private spending and investment was

An imbalance in international trade in which the value of imports exceeds the value of exports is called a(n)

Inflation is usually a more serious danger during periods of economic

The _________________ is an agency of Congress that analyzes presidential budget recommendations and estimates the costs of proposed legislation.

When the government runs a budget deficit it must make up for the shortfall in revenues by

The international organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes free trade around the world is the

The process of private corporations moving jobs to other countries is known as

The Occupational Safety and Health Act is mainly concerned with

The Environmental Protection Agency was founded in the

Inflation is measured using

Constitutional Democracy

Constitutional Foundations

American Federalism

Political Culture and Ideology

The US political Landscape

Political Parties

Public Opinion, Participation, and Voting

Campaigns and Elections

The Media and US politics

Congress

The Presidency

The Federal Bureaucracy

The Judiciary

Civil Liberties

Civil Rights

Public Policy

Making Social Policy

Making Foreign Defense Policy

State and Local Politics

State Constitutions

Parties and Elections in the States

State Legislatures

State Governors

Judges and Justice in the States

Local Governments and Metropolitics

Making State and Local Policy

Staffing and Financing State and Local Governments

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