Question 1

The Budget and Impoundment Control Act of 1974

Accepted Answer

A) was designed to strengthen the role of Congress in the budget process. 
B) became law after Congress overrode the veto of President Kennedy. 
C) abolished the Congressional Budget Office. 
D) eliminated all capital gains taxes. 
E) included a provision requiring a two-thirds vote in both chambers for the passage of any future tax expenditures. 
A) was designed to strengthen the role of Congress in the budget process. 
B) became law after Congress overrode the veto of President Kennedy. 
C) abolished the Congressional Budget Office. 
D) eliminated all capital gains taxes. 
E) included a provision requiring a two-thirds vote in both chambers for the passage of any future tax expenditures.

Question 2

The Office of Management and Budget is a presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies.

Accepted Answer

A) True 
 B)False

Question 3

Collective bargaining is a method whereby representatives of the union and employer determine wages, hours, and other conditions of employment through direct negotiation.

Accepted Answer

A) True 
 B)False

Question 4

Which cabinet department is responsible for issuing patents and trademarks?

Accepted Answer

A) Commerce 
B) Interior 
C) Labor 
D) Treasury 
E) Transportation 
A) Commerce 
B) Interior 
C) Labor 
D) Treasury 
E) Transportation

Question 5

The marginal rate of a new tax increases by 1% for every $10,000 increase in income.Such a tax is considered

Accepted Answer

A) progressive. 
B) universal. 
C) gradual. 
D) fair. 
E) regressive. 
A) progressive. 
B) universal. 
C) gradual. 
D) fair. 
E) regressive.

Question 6

Regulation is defined as any method the government uses to alter the natural workings of the open market to achieve a social goal.

Accepted Answer

A) True 
 B)False

Question 7

In recent years, one of the most notable industries to be deregulated is

Accepted Answer

A) government spending. 
B) publishing. 
C) education. 
D) health care. 
E) transportation. 
A) government spending. 
B) publishing. 
C) education. 
D) health care. 
E) transportation.

Question 8

Economic regulation generally refers to government

Accepted Answer

A) efforts to promote exports to other countries. 
B) controls on the behavior of businesses in the marketplace. 
C) attempts to stimulate the economy through taxing and spending decisions. 
D) subsidies to particular industries such as agriculture. 
E) All of the above 
A) efforts to promote exports to other countries. 
B) controls on the behavior of businesses in the marketplace. 
C) attempts to stimulate the economy through taxing and spending decisions. 
D) subsidies to particular industries such as agriculture. 
E) All of the above

Question 9

The policies of the Department of Agriculture tend to result in lower prices for basic agricultural commodities.

Accepted Answer

A) True 
 B)False

Question 10

Monetary policy refers to government attempts to manage the economy by controlling taxing and spending.

Accepted Answer

A) True 
 B)False

Question 11

The two types of regulatory agencies created by Congress are independent agencies and independent regulatory commissions.

Accepted Answer

A) True 
 B)False

Question 12

In its simplest terms, monetary policy involves managing the

Accepted Answer

A) supply of money. 
B) federal deficit. 
C) relationship between taxation and spending. 
D) balance of trade. 
E) All of the above 
A) supply of money. 
B) federal deficit. 
C) relationship between taxation and spending. 
D) balance of trade. 
E) All of the above

Question 13

Which of the following is true regarding the Federal Reserve System?

Accepted Answer

A) It consists of 12 regional banks 
B) It is the primary institution responsible for fiscal policy 
C) It is composed of members of the House and Senate banking committees 
D) Its Board of Governors is elected by governors of the ten states with the greatest number of chartered banks 
E) None of the above 
A) It consists of 12 regional banks 
B) It is the primary institution responsible for fiscal policy 
C) It is composed of members of the House and Senate banking committees 
D) Its Board of Governors is elected by governors of the ten states with the greatest number of chartered banks 
E) None of the above

Question 14

A ____________ is a court order forbidding specific individuals or groups from performing certain acts (such as striking) that the court considers harmful to the rights and property of an employer or a community.

Accepted Answer

A) collective bargaining agreement 
B) shop mandamus 
C) regulatory ruling 
D) labor injunction 
E) legislative mandate 
A) collective bargaining agreement 
B) shop mandamus 
C) regulatory ruling 
D) labor injunction 
E) legislative mandate

Question 15

The _________________ is a presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies.

Accepted Answer

A) Office of Management and Budget 
B) Council of Economic Advisers 
C) White House staff 
D) Office of Administration 
E) Cabinet 
A) Office of Management and Budget 
B) Council of Economic Advisers 
C) White House staff 
D) Office of Administration 
E) Cabinet

Question 16

The _____________ Amendment, ratified in 1913, allowed the federal government to levy individual income taxes.

Accepted Answer

A) Third 
B) Sixth 
C) Sixteenth 
D) Twenty-Ninth 
E) Twenty-Third 
A) Third 
B) Sixth 
C) Sixteenth 
D) Twenty-Ninth 
E) Twenty-Third

Question 17

During his administration, President George W.Bush was successful in getting Congress to pass tax incentives that resulted in a loss of tax revenue for the federal government.This is an example of

Accepted Answer

A) socialist economics. 
B) the national debt. 
C) earmark spending. 
D) a windfall profit. 
E) a tax expenditure. 
A) socialist economics. 
B) the national debt. 
C) earmark spending. 
D) a windfall profit. 
E) a tax expenditure.

Question 18

An estimate of the total output of all U.S.economic activity is the

Accepted Answer

A) GDP. 
B) GAO. 
C) OMB. 
D) VAT. 
E) None of the above 
A) GDP. 
B) GAO. 
C) OMB. 
D) VAT. 
E) None of the above

Question 19

The federal government spends more money annually than all state and local governments combined.

Accepted Answer

A) True 
 B)False

Question 20

Federal taxing and spending is considered _______ policy.

Accepted Answer

A) fiscal 
B) laissez-faire 
C) monetary 
D) regressive 
E) regulatory 
A) fiscal 
B) laissez-faire 
C) monetary 
D) regressive 
E) regulatory

Exam 18: Making Economic Policy

The Budget and Impoundment Control Act of 1974

The Office of Management and Budget is a presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies.

Collective bargaining is a method whereby representatives of the union and employer determine wages, hours, and other conditions of employment through direct negotiation.

Which cabinet department is responsible for issuing patents and trademarks?

The marginal rate of a new tax increases by 1% for every $10,000 increase in income.Such a tax is considered

Regulation is defined as any method the government uses to alter the natural workings of the open market to achieve a social goal.

In recent years, one of the most notable industries to be deregulated is

Economic regulation generally refers to government

The policies of the Department of Agriculture tend to result in lower prices for basic agricultural commodities.

Monetary policy refers to government attempts to manage the economy by controlling taxing and spending.

The two types of regulatory agencies created by Congress are independent agencies and independent regulatory commissions.

In its simplest terms, monetary policy involves managing the

Which of the following is true regarding the Federal Reserve System?

A ____________ is a court order forbidding specific individuals or groups from performing certain acts (such as striking) that the court considers harmful to the rights and property of an employer or a community.

The _________________ is a presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies.

The _____________ Amendment, ratified in 1913, allowed the federal government to levy individual income taxes.

During his administration, President George W.Bush was successful in getting Congress to pass tax incentives that resulted in a loss of tax revenue for the federal government.This is an example of

An estimate of the total output of all U.S.economic activity is the

The federal government spends more money annually than all state and local governments combined.

Federal taxing and spending is considered _______ policy.

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

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The Judiciary

Civil Liberties

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Making Social Policy

Making Foreign Defense Policy

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