Question 1

If a company has "market power," it means that the company is powerful enough to

Accepted Answer

A) eliminate competitors and to impose conditions on consumers rather than catering to consumer demand. 
B) dictate the laws passed by Congress that regulate its industry. 
C) determine which candidates win elections and which do not. 
D) receive an official designation as "too big to fail" from the federal government. 
A) eliminate competitors and to impose conditions on consumers rather than catering to consumer demand. 
B) dictate the laws passed by Congress that regulate its industry. 
C) determine which candidates win elections and which do not. 
D) receive an official designation as "too big to fail" from the federal government.

Question 2

The federal minimum wage was last raised in

Accepted Answer

A) 2001. 
B) 2004. 
C) 2009. 
D) 2012. 
A) 2001. 
B) 2004. 
C) 2009. 
D) 2012.

Question 3

Setting emissions standards for each industry, while allowing companies to trade so-called carbon credits, is an approach to environmental policy known as

Accepted Answer

A) cap-and-trade. 
B) the green alternative. 
C) NIMBY. 
D) the Gore protocol. 
A) cap-and-trade. 
B) the green alternative. 
C) NIMBY. 
D) the Gore protocol.

Question 4

Between September 2007 and December 2008, the Federal Reserve

Accepted Answer

A) did not change interest rates at all. 
B) raised interest rates from nearly 0 percent to 4.75 percent. 
C) raised interest rates from 4.75 percent to 9.5 percent. 
D) cut interest rates from 4.75 percent to nearly 0 percent. 
A) did not change interest rates at all. 
B) raised interest rates from nearly 0 percent to 4.75 percent. 
C) raised interest rates from 4.75 percent to 9.5 percent. 
D) cut interest rates from 4.75 percent to nearly 0 percent.

Question 5

It would be nearly impossible for the marketplace to run efficiently without some government involvement.Describe some of the goals of government intervention in the economy and provide some examples of the different economic roles that the government plays.What differences, if any, have existed between the Democratic and Republican parties in their views of the appropriate role of government intervention in the economy?

Accepted Answer

There are three components to this quest

Question 6

The federal minimum wage was ________ an hour in 2018.

Accepted Answer

A) $6.50 
B) $7.25 
C) $9.10 
D) $15.00 
A) $6.50 
B) $7.25 
C) $9.10 
D) $15.00

Question 7

The Sixteenth Amendment allows

Accepted Answer

A) state governments the power to collect income taxes. 
B) Congress the power to collect income taxes. 
C) Congress the power "to regulate commerce with foreign nations, and among the several states." 
D) the popular election of U.S.senators by the people of the states. 
A) state governments the power to collect income taxes. 
B) Congress the power to collect income taxes. 
C) Congress the power "to regulate commerce with foreign nations, and among the several states." 
D) the popular election of U.S.senators by the people of the states.

Question 8

The key argument of John Maynard Keynes is that

Accepted Answer

A) government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs. 
B) government regulations during economic depressions must be lifted because they destroy the already-slim profit margin. 
C) the economy of size shows that monopolies are the most efficient way to distribute goods throughout a national marketplace. 
D) government can rectify a falling economy by regulating the money supply. 
A) government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs. 
B) government regulations during economic depressions must be lifted because they destroy the already-slim profit margin. 
C) the economy of size shows that monopolies are the most efficient way to distribute goods throughout a national marketplace. 
D) government can rectify a falling economy by regulating the money supply.

Question 9

The nonpartisan Congressional Budget Office estimated that the American Recovery and Reinvestment Act of 2009

Accepted Answer

A) increased the number of full-time jobs by about 3.6 million. 
B) increased the number of full-time jobs by about 500,000. 
C) had no effect on the overall number of full-time jobs in the United States. 
D) decreased the number of full-time jobs by about 500,000. 
A) increased the number of full-time jobs by about 3.6 million. 
B) increased the number of full-time jobs by about 500,000. 
C) had no effect on the overall number of full-time jobs in the United States. 
D) decreased the number of full-time jobs by about 500,000.

Question 10

The minimum wage was first enacted in

Accepted Answer

A) 1879. 
B) 1901. 
C) 1938. 
D) 1995. 
A) 1879. 
B) 1901. 
C) 1938. 
D) 1995.

Question 11

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

Accepted Answer

A) raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses. 
B) lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses. 
C) take money out of circulation so that the dollar becomes more valuable. 
D) raise the reserve requirement, restricting the amount of cash and negotiable securities that banks must have on hand. 
A) raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses. 
B) lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses. 
C) take money out of circulation so that the dollar becomes more valuable. 
D) raise the reserve requirement, restricting the amount of cash and negotiable securities that banks must have on hand.

Question 12

The Paris Climate Accord was originally negotiated by President ________ in order to mitigate the effects of climate change.

Accepted Answer

A) Obama in 2015 
B) Clinton in 1998 
C) George W.Bush in 2009 
D) Trump in 2017 
A) Obama in 2015 
B) Clinton in 1998 
C) George W.Bush in 2009 
D) Trump in 2017

Question 13

________ are given to states and local governments on the condition that all expenditures are limited to the problem or group specified by law.

Accepted Answer

A) Tariffs 
B) Loopholes 
C) Monopolies 
D) Categorical grants 
A) Tariffs 
B) Loopholes 
C) Monopolies 
D) Categorical grants

Question 14

Sales taxes are ________, and most income taxes are ________.

Accepted Answer

A) regressive; regressive 
B) progressive; progressive 
C) progressive; regressive 
D) regressive; progressive 
A) regressive; regressive 
B) progressive; progressive 
C) progressive; regressive 
D) regressive; progressive

Question 15

Supply-side economics is the idea that

Accepted Answer

A) the best method of producing high levels of economic growth is to engage in high levels of government spending. 
B) the government should impose heavy tariffs on imported goods in order to protect domestic suppliers. 
C) the government's role in the economy should be strictly limited to regulating the supply of money. 
D) reducing the marginal rate of taxation will create a productive economy by promoting levels of work and investment that would otherwise be discouraged by higher taxes. 
A) the best method of producing high levels of economic growth is to engage in high levels of government spending. 
B) the government should impose heavy tariffs on imported goods in order to protect domestic suppliers. 
C) the government's role in the economy should be strictly limited to regulating the supply of money. 
D) reducing the marginal rate of taxation will create a productive economy by promoting levels of work and investment that would otherwise be discouraged by higher taxes.

Question 16

________ are government grants of cash or other valuable commodities such as land that are used to promote activities desired by government leaders.

Accepted Answer

A) Contracts 
B) Business development funds 
C) Categorical grants 
D) Subsidies 
A) Contracts 
B) Business development funds 
C) Categorical grants 
D) Subsidies

Question 17

The fact that tax laws allow individuals or companies to deduct from their taxable incomes any money they can justify as an investment or a "business expense" is an example of a(n)

Accepted Answer

A) cap-and-trade policy. 
B) monetary policy. 
C) earmark. 
D) loophole. 
A) cap-and-trade policy. 
B) monetary policy. 
C) earmark. 
D) loophole.

Question 18

A $0.25 per gallon tax on gasoline is an example of a ________ tax.

Accepted Answer

A) progressive 
B) regressive 
C) transgressive 
D) capital gains 
A) progressive 
B) regressive 
C) transgressive 
D) capital gains

Question 19

The National Labor Relations Act was designed to

Accepted Answer

A) oversee union elections and collective bargaining between labor and industry. 
B) prohibit workers from forming unions. 
C) establish a national minimum hourly wage. 
D) limit the amount of money labor unions and corporations could donate to political parties. 
A) oversee union elections and collective bargaining between labor and industry. 
B) prohibit workers from forming unions. 
C) establish a national minimum hourly wage. 
D) limit the amount of money labor unions and corporations could donate to political parties.

Question 20

In the 1800s, Congress ________ the creation of the railroad system ________.

Accepted Answer

A) supported; by providing categorical grants to the state and local governments that were placed in charge of constructing rail lines 
B) supported; by paying for the construction of all rail lines and starting a national railcar service 
C) supported; by granting more than 100 million acres of public-domain land to railroad interests 
D) opposed; and did nothing to support it 
A) supported; by providing categorical grants to the state and local governments that were placed in charge of constructing rail lines 
B) supported; by paying for the construction of all rail lines and starting a national railcar service 
C) supported; by granting more than 100 million acres of public-domain land to railroad interests 
D) opposed; and did nothing to support it

If a company has "market power," it means that the company is powerful enough to

The federal minimum wage was last raised in

Setting emissions standards for each industry, while allowing companies to trade so-called carbon credits, is an approach to environmental policy known as

Between September 2007 and December 2008, the Federal Reserve

The federal minimum wage was ________ an hour in 2018.

The Sixteenth Amendment allows

The key argument of John Maynard Keynes is that

The nonpartisan Congressional Budget Office estimated that the American Recovery and Reinvestment Act of 2009

The minimum wage was first enacted in

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

The Paris Climate Accord was originally negotiated by President ________ in order to mitigate the effects of climate change.

________ are given to states and local governments on the condition that all expenditures are limited to the problem or group specified by law.

Sales taxes are , and most income taxes are .

Supply-side economics is the idea that

________ are government grants of cash or other valuable commodities such as land that are used to promote activities desired by government leaders.

The fact that tax laws allow individuals or companies to deduct from their taxable incomes any money they can justify as an investment or a "business expense" is an example of a(n)

A $0.25 per gallon tax on gasoline is an example of a ________ tax.

The National Labor Relations Act was designed to

In the 1800s, Congress the creation of the railroad system .

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

If a company has "market power," it means that the company is powerful enough to

The federal minimum wage was last raised in

Setting emissions standards for each industry, while allowing companies to trade so-called carbon credits, is an approach to environmental policy known as

Between September 2007 and December 2008, the Federal Reserve

The federal minimum wage was ________ an hour in 2018.

The Sixteenth Amendment allows

The key argument of John Maynard Keynes is that

The nonpartisan Congressional Budget Office estimated that the American Recovery and Reinvestment Act of 2009

The minimum wage was first enacted in

The best way for Federal Reserve Board officials to help boost a stagnant economy is to

The Paris Climate Accord was originally negotiated by President ________ in order to mitigate the effects of climate change.

________ are given to states and local governments on the condition that all expenditures are limited to the problem or group specified by law.

Sales taxes are ________, and most income taxes are ________.

Supply-side economics is the idea that

________ are government grants of cash or other valuable commodities such as land that are used to promote activities desired by government leaders.

The fact that tax laws allow individuals or companies to deduct from their taxable incomes any money they can justify as an investment or a "business expense" is an example of a(n)

A $0.25 per gallon tax on gasoline is an example of a ________ tax.

The National Labor Relations Act was designed to

In the 1800s, Congress ________ the creation of the railroad system ________.

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

Sales taxes are , and most income taxes are .

In the 1800s, Congress the creation of the railroad system .