Exam 16: Political Economy

How do Keynesian economic policies differ from the traditional laissez-faire policies developed by Adam Smith?

Compare American and Canadian views on the size of government.

During bad times, government used to increase aggregate demand through __________ on public works and welfare to make recessions shorter and milder.

Official poverty figures do not include __________ benefits, such as food stamps, transferred to the poor by government programs.

Established by Nixon, the __________ exchange rate devalued the dollar by about one fifth.

Starting in the late 1950s, the United States spent more abroad than it sold, leading to large deficits.

Describe Aristotle's view of government, society and the economy.

According to political scientist Ira Sharkansky, "All modern states are welfare states, and all welfare states are __________."

Examine the government's hand in fixed exchange and floating exchange rates as they relate to the Gold Standard.How did Nixon intervene in the free market? Was this intervention successful?

Analyze the 2008 financial crisis.What was the conflict in issuing bailouts to large firms? How is this form of government welfare fundamentally different from entitlement programs? Which presents the greater moral hazard?

Medical costs consume nearly __________ percent of the U.S.gross domestic product, most of it paid through government and private health insurance.

Investigate the possible outcome of sequestration had it taken place in 2013.

Conservatives champion Adam Smith for developing the __________ system.

Many conservative economists argue that some banks are __________, because they would topple the rest of the economy with them.

Due to increased medical costs, Medicare recipients are required to contribute bigger __________ to hold down overuse.

Analyze the role of "animal spirits" on financial bubbles.

Describe British economist John Maynard Keynes' proposal to cure economic depressions.

Many conservatives argue that poor communities develop a culture of poverty that instills ___________, an indifference to providing for their families and futures.

Differentiate between liberal and conservative definitions of "poverty."

Conservatives hold that Johnson's Great Society was a waste of money, locking recipients into __________ and encouraging a subculture of drugs and crime.