Question 1

Today, labor unions represent about ________ percent of the labor force.

Accepted Answer

A) 50 
B) 35 
C) 25 
D) 10 
A) 50 
B) 35 
C) 25 
D) 10

Question 2

Prior to the Great Depression

Accepted Answer

A) only state governments sought to promote full employment. 
B) only the federal government sought to promote full employment. 
C) both the federal government and the state governments sought to promote full employment. 
D) neither the federal government nor the state governments sought to promote full employment. 
A) only state governments sought to promote full employment. 
B) only the federal government sought to promote full employment. 
C) both the federal government and the state governments sought to promote full employment. 
D) neither the federal government nor the state governments sought to promote full employment.

Question 3

The first tax cut designed to stimulate the economy and promote full employment was enacted by President

Accepted Answer

A) Lyndon B.Johnson. 
B) Theodore Roosevelt. 
C) Franklin D.Roosevelt. 
D) John F.Kennedy. 
A) Lyndon B.Johnson. 
B) Theodore Roosevelt. 
C) Franklin D.Roosevelt. 
D) John F.Kennedy.

Question 4

Which of the following is an example of mandatory spending?

Accepted Answer

A) farm price supports 
B) Medicare 
C) defense spending 
D) both farm price supports and Medicare 
A) farm price supports 
B) Medicare 
C) defense spending 
D) both farm price supports and Medicare

Question 5

The constitutional source of Congress's monetary and fiscal powers is in

Accepted Answer

A) Article I, Section 4. 
B) Article I, Section 8. 
C) the Tenth Amendment. 
D) Article II, Section 4. 
A) Article I, Section 4. 
B) Article I, Section 8. 
C) the Tenth Amendment. 
D) Article II, Section 4.

Question 6

In addition to the Consumer Product Safety Commission, the two federal agencies that play the MOST active role in protecting the public from unsafe products are the

Accepted Answer

A) Department of Transportation and the Food and Drug Administration. 
B) Environmental Protection Agency and the Department of Interior. 
C) American Consumer Institute and the Public Patent Foundation. 
D) Environmental Protection Agency and the American Consumer Institute. 
A) Department of Transportation and the Food and Drug Administration. 
B) Environmental Protection Agency and the Department of Interior. 
C) American Consumer Institute and the Public Patent Foundation. 
D) Environmental Protection Agency and the American Consumer Institute.

Question 7

According to the nonpartisan Congressional Budget Office, the Troubled Asset Relief Program (TARP) will ultimately cost taxpayers about

Accepted Answer

A) $9 trillion more than initially expected. 
B) $665 billion more than initially expected. 
C) $9 trillion less than initially expected. 
D) $665 billion less than expected. 
A) $9 trillion more than initially expected. 
B) $665 billion more than initially expected. 
C) $9 trillion less than initially expected. 
D) $665 billion less than expected.

Question 8

The ________ is the amount by which government spending exceeds government revenue in a fiscal year.

Accepted Answer

A) budget deficit 
B) inflation rate 
C) gross domestic product 
D) reserve requirement 
A) budget deficit 
B) inflation rate 
C) gross domestic product 
D) reserve requirement

Question 9

An officially expressed purpose or goal backed by a sanction is a

Accepted Answer

A) public policy. 
B) regulation. 
C) rule. 
D) bill. 
A) public policy. 
B) regulation. 
C) rule. 
D) bill.

Question 10

Which president rejected the theory of Keynesian economics?

Accepted Answer

A) John Kennedy 
B) Lyndon Johnson 
C) Richard Nixon 
D) Ronald Reagan 
A) John Kennedy 
B) Lyndon Johnson 
C) Richard Nixon 
D) Ronald Reagan

Question 11

According to many analysts, the spurt of economic growth in 2003 illustrates that

Accepted Answer

A) the federal government can always produce large levels of economic growth if the right decisions are made regarding deficit spending. 
B) inflation is always a problem that government officials should attempt to solve. 
C) inflation is not a problem that government officials should attempt to solve. 
D) some kinds of public investment, such as military spending on wars, can produce economic growth as a by-product of pursuing other more central objectives. 
A) the federal government can always produce large levels of economic growth if the right decisions are made regarding deficit spending. 
B) inflation is always a problem that government officials should attempt to solve. 
C) inflation is not a problem that government officials should attempt to solve. 
D) some kinds of public investment, such as military spending on wars, can produce economic growth as a by-product of pursuing other more central objectives.

Question 12

During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.

Accepted Answer

A) Adam Smith's 
B) Milton Friedman's 
C) Friedrich Hayek's 
D) John Maynard Keynes's 
A) Adam Smith's 
B) Milton Friedman's 
C) Friedrich Hayek's 
D) John Maynard Keynes's

Question 13

Which of the following statements best characterizes the percentage of federal government revenue that comes from social insurance and corporate taxes since 1960?

Accepted Answer

A) Social insurance and corporate taxes each compose roughly the same share of federal revenues that they did in 1960. 
B) Social insurance taxes still compose roughly the same share of federal revenues that they did in 1960, but corporate taxes compose a much larger share of federal revenues. 
C) Social insurance taxes now compose a much smaller share of federal revenues than they did in 1960, but corporate taxes still compose roughly the same share of federal revenues. 
D) Social insurance taxes now compose a much greater share of federal revenues than they did in 1960, while corporate taxes compose a much smaller share of federal revenues. 
A) Social insurance and corporate taxes each compose roughly the same share of federal revenues that they did in 1960. 
B) Social insurance taxes still compose roughly the same share of federal revenues that they did in 1960, but corporate taxes compose a much larger share of federal revenues. 
C) Social insurance taxes now compose a much smaller share of federal revenues than they did in 1960, but corporate taxes still compose roughly the same share of federal revenues. 
D) Social insurance taxes now compose a much greater share of federal revenues than they did in 1960, while corporate taxes compose a much smaller share of federal revenues.

Question 14

The Human Genome Project was initiated

Accepted Answer

A) by government researchers and taken up later by private corporations. 
B) by private corporations and taken up later by government researchers. 
C) and completed entirely by private corporations. 
D) and completed entirely by government researchers. 
A) by government researchers and taken up later by private corporations. 
B) by private corporations and taken up later by government researchers. 
C) and completed entirely by private corporations. 
D) and completed entirely by government researchers.

Question 15

During the Great Depression of 1929-39, approximately ________ percent of the workforce became unemployed.

Accepted Answer

A) 5 
B) 20 
C) 40 
D) 60 
A) 5 
B) 20 
C) 40 
D) 60

Question 16

Although the Federal Reserve's decision to cut the federal funds rate is expected to ________ economic growth, its decision to raise the federal funds rate is expected to
________ economic growth.

Accepted Answer

A) speed up; slow down 
B) slow down; speed up 
C) have no effect on; speed up 
D) have no effect on; slow down 
A) speed up; slow down 
B) slow down; speed up 
C) have no effect on; speed up 
D) have no effect on; slow down

Question 17

The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called

Accepted Answer

A) laissez-faire economics. 
B) Keynesianism. 
C) social democracy. 
D) monetarism. 
A) laissez-faire economics. 
B) Keynesianism. 
C) social democracy. 
D) monetarism.

Question 18

The ________ has taken the lead in conducting basic research to counter bioterrorism.

Accepted Answer

A) National Science Foundation 
B) Department of Defense 
C) Department of Homeland Security 
D) National Institutes of Health 
A) National Science Foundation 
B) Department of Defense 
C) Department of Homeland Security 
D) National Institutes of Health

Question 19

Inflation reached historically ________ levels during the late 1970s, ________ ever since.

Accepted Answer

A) high; but declined by the mid-1980s and has remained low 
B) low; but increased by the mid-1980s and has remained high 
C) low; and has remained low 
D) high; and has remained high 
A) high; but declined by the mid-1980s and has remained low 
B) low; but increased by the mid-1980s and has remained high 
C) low; and has remained low 
D) high; and has remained high

Question 20

Describe how the government uses monetary and fiscal policies to influence the economy.In your answer, be sure to provide clear definitions of what monetary, fiscal, and regulatory policies are and link these definitions to a discussion of the Federal Reserve System and the federal budget.

Accepted Answer

There are three components to this quest

Today, labor unions represent about ________ percent of the labor force.

Prior to the Great Depression

The first tax cut designed to stimulate the economy and promote full employment was enacted by President

Which of the following is an example of mandatory spending?

The constitutional source of Congress's monetary and fiscal powers is in

In addition to the Consumer Product Safety Commission, the two federal agencies that play the MOST active role in protecting the public from unsafe products are the

According to the nonpartisan Congressional Budget Office, the Troubled Asset Relief Program (TARP) will ultimately cost taxpayers about

The ________ is the amount by which government spending exceeds government revenue in a fiscal year.

An officially expressed purpose or goal backed by a sanction is a

Which president rejected the theory of Keynesian economics?

According to many analysts, the spurt of economic growth in 2003 illustrates that

During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.

Which of the following statements best characterizes the percentage of federal government revenue that comes from social insurance and corporate taxes since 1960?

The Human Genome Project was initiated

During the Great Depression of 1929-39, approximately ________ percent of the workforce became unemployed.

Although the Federal Reserve's decision to cut the federal funds rate is expected to economic growth, its decision to raise the federal funds rate is expected to economic growth.

The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called

The ________ has taken the lead in conducting basic research to counter bioterrorism.

Inflation reached historically levels during the late 1970s, ever since.

Describe how the government uses monetary and fiscal policies to influence the economy.In your answer, be sure to provide clear definitions of what monetary, fiscal, and regulatory policies are and link these definitions to a discussion of the Federal Reserve System and the federal budget.

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

Today, labor unions represent about ________ percent of the labor force.

Prior to the Great Depression

The first tax cut designed to stimulate the economy and promote full employment was enacted by President

Which of the following is an example of mandatory spending?

The constitutional source of Congress's monetary and fiscal powers is in

In addition to the Consumer Product Safety Commission, the two federal agencies that play the MOST active role in protecting the public from unsafe products are the

According to the nonpartisan Congressional Budget Office, the Troubled Asset Relief Program (TARP) will ultimately cost taxpayers about

The ________ is the amount by which government spending exceeds government revenue in a fiscal year.

An officially expressed purpose or goal backed by a sanction is a

Which president rejected the theory of Keynesian economics?

According to many analysts, the spurt of economic growth in 2003 illustrates that

During the New Deal, ________ theory that a government could boost employment by stimulating demand became quite influential.

Which of the following statements best characterizes the percentage of federal government revenue that comes from social insurance and corporate taxes since 1960?

The Human Genome Project was initiated

During the Great Depression of 1929-39, approximately ________ percent of the workforce became unemployed.

Although the Federal Reserve's decision to cut the federal funds rate is expected to ________ economic growth, its decision to raise the federal funds rate is expected to ________ economic growth.

The idea that the government can stimulate a slow economy by increasing public spending or cutting taxes is called

The ________ has taken the lead in conducting basic research to counter bioterrorism.

Inflation reached historically ________ levels during the late 1970s, ________ ever since.

Describe how the government uses monetary and fiscal policies to influence the economy.In your answer, be sure to provide clear definitions of what monetary, fiscal, and regulatory policies are and link these definitions to a discussion of the Federal Reserve System and the federal budget.

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

Although the Federal Reserve's decision to cut the federal funds rate is expected to economic growth, its decision to raise the federal funds rate is expected to economic growth.

Inflation reached historically levels during the late 1970s, ever since.