Question 1

Which president said in his inaugural address, "Government is not the solution to our problem, government is the problem."

Accepted Answer

A) Richard Nixon 
B) Franklin Roosevelt 
C) Dwight Eisenhower 
D) Ronald Reagan 
A) Richard Nixon 
B) Franklin Roosevelt 
C) Dwight Eisenhower 
D) Ronald Reagan D

Question 2

Federal budget spending on mandatory programs

Accepted Answer

A) increased between 1962 and 1990 but has decreased dramatically since 1990. 
B) decreased between 1962 and 1990 but has increased dramatically since 1990. 
C) has remained constant since 1970. 
D) has grown dramatically since 1970. 
A) increased between 1962 and 1990 but has decreased dramatically since 1990. 
B) decreased between 1962 and 1990 but has increased dramatically since 1990. 
C) has remained constant since 1970. 
D) has grown dramatically since 1970. D

Question 3

Policy makers charged with devising approaches to climate change have identified three basic approaches.Discuss each of these different approaches and give an example of a specific policy guided by each approach.

Accepted Answer

There are three components to this question:
a.Mitigation or reduction of greenhouse gas emissions: The first approach is mitigation, or reduction, of greenhouse gas emissions.Two examples of policies that aim to achieve this goal are tougher standards for auto fuel mileage and higher taxes on gasoline.Another example is the creation of a cap-and-trade system (which sets a target for carbon emissions for each industry but allows companies to trade "carbon credits" with one another).
b.Promoting alternative technologies: The second is large-scale research and development to promote alternative technologies.A concrete example can be found in the 2009 American Recovery and Reinvestment Act.This law allocated nearly $30 billion to support alternative energy technology investment and to improve energy efficiency.
c.Adaptation: The third consists of measures that allow us to adapt to a warmer climate.Adaptation would entail a diverse set of policies, including establishment of green corridors, pest and disease control, water conservation to deal with drought, and new infrastructure such as seawalls to cope with rising sea levels.Some European countries such as the low-lying Netherlands are relocating people as part of their adaptation strategy.

Question 4

Approximately ________ percent of the federal budget is in the mandatory spending category.

Accepted Answer

A) 25 
B) 33 
C) 50 
D) 70 
A) 25 
B) 33 
C) 50 
D) 70

Question 5

A key power of the Fed is to

Accepted Answer

A) change tax rates. 
B) lower the budget deficit. 
C) lower the total national debt. 
D) expand and contract the amount of credit available in the United States. 
A) change tax rates. 
B) lower the budget deficit. 
C) lower the total national debt. 
D) expand and contract the amount of credit available in the United States.

Question 6

The ________ marked the major historical turning point in the relationship between the government and the marketplace.

Accepted Answer

A) Civil War 
B) Depression of 1896 
C) Great Depression 
D) implementation of Reaganomics 
A) Civil War 
B) Depression of 1896 
C) Great Depression 
D) implementation of Reaganomics

Question 7

Which of the following statements best summarizes the Democratic and Republican parties' views on the appropriate role of government in the economy?

Accepted Answer

A) Republicans tend to draw on the ideas of laissez-faire economics as they argue for significant reductions in nonmilitary spending; Democrats stress the importance of government regulation in promoting a strong economy. 
B) Democrats tend to draw on the ideas of laissez-faire economics as they argue for significant reductions in nonmilitary spending; Republicans stress the importance of government regulation in promoting a strong economy. 
C) Both the Democratic and Republican parties believe in government ownership of key industries. 
D) Both the Democratic and Republican parties believe strongly in the ideas of laissez-faire economics and would like to keep the government out of the economy altogether. 
A) Republicans tend to draw on the ideas of laissez-faire economics as they argue for significant reductions in nonmilitary spending; Democrats stress the importance of government regulation in promoting a strong economy. 
B) Democrats tend to draw on the ideas of laissez-faire economics as they argue for significant reductions in nonmilitary spending; Republicans stress the importance of government regulation in promoting a strong economy. 
C) Both the Democratic and Republican parties believe in government ownership of key industries. 
D) Both the Democratic and Republican parties believe strongly in the ideas of laissez-faire economics and would like to keep the government out of the economy altogether.

Question 8

Before the 1930s, relations between labor and management in the United States were

Accepted Answer

A) defined by peaceful negotiations. 
B) among the most violent in the world. 
C) dependent on labor unions for stability. 
D) stable. 
A) defined by peaceful negotiations. 
B) among the most violent in the world. 
C) dependent on labor unions for stability. 
D) stable.

Question 9

The Great Depression and World War II

Accepted Answer

A) made Americans realize that unemployment was an unfortunate but largely irremediable occurrence. 
B) made Americans realize that unemployment could only be solved by a major international crisis, such as a war. 
C) showed that the government could help to ensure full employment. 
D) showed that ill-advised government programs could cause large increases in unemployment. 
A) made Americans realize that unemployment was an unfortunate but largely irremediable occurrence. 
B) made Americans realize that unemployment could only be solved by a major international crisis, such as a war. 
C) showed that the government could help to ensure full employment. 
D) showed that ill-advised government programs could cause large increases in unemployment.

Question 10

The tax reform laws of 1981,1986, and 2001-2003 were significant because they

Accepted Answer

A) lowered the federal funds rate. 
B) made budget deficits illegal. 
C) significantly reduced the progressiveness of the federal income tax. 
D) significantly increased the progressiveness of the federal income tax. 
A) lowered the federal funds rate. 
B) made budget deficits illegal. 
C) significantly reduced the progressiveness of the federal income tax. 
D) significantly increased the progressiveness of the federal income tax.

Question 11

Upton Sinclair's 1906 exposé The Jungle revealed

Accepted Answer

A) widespread use of child labor in coal mines and factories throughout the United States. 
B) violent suppression of labor unions by big business. 
C) control of politicians by corporate interests who run the political machines. 
D) unsanitary practices at meatpacking plants. 
A) widespread use of child labor in coal mines and factories throughout the United States. 
B) violent suppression of labor unions by big business. 
C) control of politicians by corporate interests who run the political machines. 
D) unsanitary practices at meatpacking plants.

Question 12

The American Recovery and Reinvestment Act of 2009 is a good example of ________ principles.

Accepted Answer

A) laissez-faire 
B) Keynesian 
C) supply-side economic 
D) neo-Malthusian 
A) laissez-faire 
B) Keynesian 
C) supply-side economic 
D) neo-Malthusian

Question 13

The index of the total output of goods and services produced in a national economy is called the

Accepted Answer

A) inflation index. 
B) gross domestic product. 
C) monetary fund. 
D) consumer price index. 
A) inflation index. 
B) gross domestic product. 
C) monetary fund. 
D) consumer price index.

Question 14

"Right to work" laws

Accepted Answer

A) provide subsidies to companies who hire previously unemployed workers. 
B) limit the amount of payroll taxes that can be taken out of the checks of full-time employees. 
C) forbid employment discrimination on the basis of race, ethnicity, and gender. 
D) guarantee that a worker does not have to belong to a union or pay union dues as a condition of employment. 
A) provide subsidies to companies who hire previously unemployed workers. 
B) limit the amount of payroll taxes that can be taken out of the checks of full-time employees. 
C) forbid employment discrimination on the basis of race, ethnicity, and gender. 
D) guarantee that a worker does not have to belong to a union or pay union dues as a condition of employment.

Question 15

The power to raise or lower the tax rate is part of

Accepted Answer

A) fiscal policy. 
B) monetary policy. 
C) the contracting power. 
D) budgetary policy. 
A) fiscal policy. 
B) monetary policy. 
C) the contracting power. 
D) budgetary policy.

Question 16

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Accepted Answer

A) control discretionary spending. 
B) regulate large businesses that establish monopolies. 
C) control mandatory spending. 
D) close tax loopholes. 
A) control discretionary spending. 
B) regulate large businesses that establish monopolies. 
C) control mandatory spending. 
D) close tax loopholes.

Question 17

Which of the following statements about American public opinion is MOST accurate?

Accepted Answer

A) A majority of Americans regularly say they would prefer a larger government with more services, but polls also reveal very little support for increasing spending on any specific government program. 
B) A majority of Americans regularly say they would prefer a smaller government with fewer services, but polls also reveal very little support for cutting any specific government programs. 
C) A majority of Americans regularly say they would prefer a smaller government with fewer services, and polls also reveal strong support for cutting nearly every government program. 
D) A majority of Americans regularly say they would prefer a larger government with more services, and polls also reveal strong support for increasing spending on nearly every government program. 
A) A majority of Americans regularly say they would prefer a larger government with more services, but polls also reveal very little support for increasing spending on any specific government program. 
B) A majority of Americans regularly say they would prefer a smaller government with fewer services, but polls also reveal very little support for cutting any specific government programs. 
C) A majority of Americans regularly say they would prefer a smaller government with fewer services, and polls also reveal strong support for cutting nearly every government program. 
D) A majority of Americans regularly say they would prefer a larger government with more services, and polls also reveal strong support for increasing spending on nearly every government program.

Question 18

The American Recovery and Reinvestment Act of 2009 did NOT include

Accepted Answer

A) major reductions in individual and business taxes. 
B) measures to limit teacher layoffs and cutbacks in local school districts. 
C) job training programs for low-income and unemployed workers. 
D) economic incentives to purchase new, more fuel-efficient vehicles when trading in less fuel-efficient vehicles. 
A) major reductions in individual and business taxes. 
B) measures to limit teacher layoffs and cutbacks in local school districts. 
C) job training programs for low-income and unemployed workers. 
D) economic incentives to purchase new, more fuel-efficient vehicles when trading in less fuel-efficient vehicles.

Question 19

________ occurs when the price level of goods and services increases over several months.

Accepted Answer

A) A budget deficit 
B) An open-market operation 
C) Inflation 
D) A recession 
A) A budget deficit 
B) An open-market operation 
C) Inflation 
D) A recession

Question 20

Sematech is a

Accepted Answer

A) New York-based global investment bank and securities trading and brokerage firm that failed in 2008 as part of the global financial crisis and recession; it was subsequently sold to JPMorgan Chase. 
B) federal government agency that supports basic research across a range of fields in order to advance fundamental knowledge that may be broadly useful. 
C) nonprofit consortium of major U.S.computer microchip manufacturers set up in the 1980s to work with the federal government to reestablish American leadership in semiconductor manufacturing. 
D) manufacturer of cylindrical solar panels that received a $535 million loan guarantee under the American Recovery and Reinvestment Act of 2009. 
A) New York-based global investment bank and securities trading and brokerage firm that failed in 2008 as part of the global financial crisis and recession; it was subsequently sold to JPMorgan Chase. 
B) federal government agency that supports basic research across a range of fields in order to advance fundamental knowledge that may be broadly useful. 
C) nonprofit consortium of major U.S.computer microchip manufacturers set up in the 1980s to work with the federal government to reestablish American leadership in semiconductor manufacturing. 
D) manufacturer of cylindrical solar panels that received a $535 million loan guarantee under the American Recovery and Reinvestment Act of 2009.

Which president said in his inaugural address, "Government is not the solution to our problem, government is the problem."

Federal budget spending on mandatory programs

Policy makers charged with devising approaches to climate change have identified three basic approaches.Discuss each of these different approaches and give an example of a specific policy guided by each approach.

Approximately ________ percent of the federal budget is in the mandatory spending category.

A key power of the Fed is to

The ________ marked the major historical turning point in the relationship between the government and the marketplace.

Which of the following statements best summarizes the Democratic and Republican parties' views on the appropriate role of government in the economy?

Before the 1930s, relations between labor and management in the United States were

The Great Depression and World War II

The tax reform laws of 1981,1986, and 2001-2003 were significant because they

Upton Sinclair's 1906 exposé The Jungle revealed

The American Recovery and Reinvestment Act of 2009 is a good example of ________ principles.

The index of the total output of goods and services produced in a national economy is called the

"Right to work" laws

The power to raise or lower the tax rate is part of

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Which of the following statements about American public opinion is MOST accurate?

The American Recovery and Reinvestment Act of 2009 did NOT include

________ occurs when the price level of goods and services increases over several months.

Sematech is a

American Political Culture

The Founding and the Constitution

Federalism

Civil Liberties

Civil Rights

Public Opinion

The Media

Political Participation and Voting

Political Parties

Campaigns and Elections

Groups and Interests

Congress

The Presidency

Bureaucracy in a Democracy

The Federal Courts

Social Policy

Foreign Policy and Democracy

Filters

Exam 16: Government and the Economy

Which president said in his inaugural address, "Government is not the solution to our problem, government is the problem."

Federal budget spending on mandatory programs

Policy makers charged with devising approaches to climate change have identified three basic approaches.Discuss each of these different approaches and give an example of a specific policy guided by each approach.

Approximately ________ percent of the federal budget is in the mandatory spending category.

A key power of the Fed is to

The ________ marked the major historical turning point in the relationship between the government and the marketplace.

Which of the following statements best summarizes the Democratic and Republican parties' views on the appropriate role of government in the economy?

Before the 1930s, relations between labor and management in the United States were

The Great Depression and World War II

The tax reform laws of 1981,1986, and 2001-2003 were significant because they

Upton Sinclair's 1906 exposé The Jungle revealed

The American Recovery and Reinvestment Act of 2009 is a good example of ________ principles.

The index of the total output of goods and services produced in a national economy is called the

"Right to work" laws

The power to raise or lower the tax rate is part of

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Which of the following statements about American public opinion is MOST accurate?

The American Recovery and Reinvestment Act of 2009 did NOT include

________ occurs when the price level of goods and services increases over several months.

Sematech is a

American Political Culture

The Founding and the Constitution

Federalism

Civil Liberties

Civil Rights

Public Opinion

The Media

Political Participation and Voting

Political Parties

Campaigns and Elections

Groups and Interests

Congress

The Presidency

Bureaucracy in a Democracy

The Federal Courts

Social Policy

Foreign Policy and Democracy

Filters