Question 1

Someone participating in a workfare program is likely to end up __________.

Accepted Answer

A) relying on food stamps 
B) enrolled in the Medicaid program 
C) getting the Earned Income Tax Credit 
D) getting a job with the federal government 
A) relying on food stamps 
B) enrolled in the Medicaid program 
C) getting the Earned Income Tax Credit 
D) getting a job with the federal government

Question 2

Which of these is the best example of Keynesianism?

Accepted Answer

A) President Eisenhower's attempt to limit defense spending 
B) President Reagan's efforts to deregulate the airline industry 
C) President Johnson's deficit spending to support the Vietnam War 
D) the Federal Reserve Board's sharp decrease in interest rates to address the 2008 economic crisis 
A) President Eisenhower's attempt to limit defense spending 
B) President Reagan's efforts to deregulate the airline industry 
C) President Johnson's deficit spending to support the Vietnam War 
D) the Federal Reserve Board's sharp decrease in interest rates to address the 2008 economic crisis

Question 3

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

Accepted Answer

A) Laissez-faire policies advocate for "cutthroat" capitalism,while Keynesian policies seek to spread wealth equally among a nation's citizens. 
B) Laissez-faire policies advocate for increased spending and stimuli for government-run businesses,while Keynesian economics argues for a hands-free approach. 
C) Keynesian policies advocate for increased government control of economics,while traditional laissez-faire economics argues for a hands-free approach. 
D) The more liberal laissez-faire economies distribute wealth more evenly among society,while Keynesian economics tends to distribute wealth among the top one percent. 
A) Laissez-faire policies advocate for "cutthroat" capitalism,while Keynesian policies seek to spread wealth equally among a nation's citizens. 
B) Laissez-faire policies advocate for increased spending and stimuli for government-run businesses,while Keynesian economics argues for a hands-free approach. 
C) Keynesian policies advocate for increased government control of economics,while traditional laissez-faire economics argues for a hands-free approach. 
D) The more liberal laissez-faire economies distribute wealth more evenly among society,while Keynesian economics tends to distribute wealth among the top one percent.

Question 4

Which statement explains how Medicare differs from Medicaid?

Accepted Answer

A) Medicare is an entitlement while Medicaid is a form of welfare. 
B) Medicare is completely free while Medicaid requires a recipient contribution. 
C) Medicare pays for itself while Medicaid costs the government billions of dollars. 
D) Medicare subsidizes health insurance while Medicaid provides direct payments to doctors and hospitals. 
A) Medicare is an entitlement while Medicaid is a form of welfare. 
B) Medicare is completely free while Medicaid requires a recipient contribution. 
C) Medicare pays for itself while Medicaid costs the government billions of dollars. 
D) Medicare subsidizes health insurance while Medicaid provides direct payments to doctors and hospitals.

Question 5

Welfare programs are likely to produce welfare dependency when they __________.

Accepted Answer

A) reduce incentives to work 
B) reduce a person's tax burden 
C) benefit people who are disabled 
D) benefit the middle class more than the poor 
A) reduce incentives to work 
B) reduce a person's tax burden 
C) benefit people who are disabled 
D) benefit the middle class more than the poor

Question 6

The Federal Reserve Board would address a sudden rise in the inflation rate by __________.

Accepted Answer

A) raising interest rates 
B) balancing the budget 
C) implementing a flat tax 
D) decreasing government spending 
A) raising interest rates 
B) balancing the budget 
C) implementing a flat tax 
D) decreasing government spending

Question 7

The 1973 Mideast war allowed members of the Organization of Petroleum Exporting Countries (OPEC)to __________.

Accepted Answer

A) quadruple oil prices 
B) keep oil prices down 
C) export to Japan and China 
D) sell to nations in Eastern Europe 
A) quadruple oil prices 
B) keep oil prices down 
C) export to Japan and China 
D) sell to nations in Eastern Europe

Question 8

How does the American welfare state compare to those of other industrialized nations?

Accepted Answer

A) Much less is allocated to welfare in the United States. 
B) The United States allocates about the same to welfare. 
C) Other nations allocate less to welfare than the United States. 
D) Few nations besides the United States maintain funds for welfare. 
A) Much less is allocated to welfare in the United States. 
B) The United States allocates about the same to welfare. 
C) Other nations allocate less to welfare than the United States. 
D) Few nations besides the United States maintain funds for welfare.

Question 9

President Clinton's 1996 entitlement reforms gave welfare recipients two years to get off government assistance.

Accepted Answer

A) True 
 B)False

Question 10

Which of these ideas best supports the argument that the government should take a limited role in the economy?

Accepted Answer

A) Government programs rely on tax revenues. 
B) Government institutions are inherently inefficient. 
C) Tax incentives are effective at changing consumption patterns. 
D) Economic downturns can be avoided through shrewd economic management. 
A) Government programs rely on tax revenues. 
B) Government institutions are inherently inefficient. 
C) Tax incentives are effective at changing consumption patterns. 
D) Economic downturns can be avoided through shrewd economic management.

Question 11

President Clinton's 1996 welfare reform effort would be seen as a failure by liberals if it resulted in which of the following?

Accepted Answer

A) People got off welfare but not necessarily out of poverty. 
B) Welfare dependency was replaced by reliance on entitlements. 
C) Welfare recipients opted to stop receiving payments without enrolling in workfare. 
D) A reduction in the tax base occurred that increased deficit spending on remaining welfare programs. 
A) People got off welfare but not necessarily out of poverty. 
B) Welfare dependency was replaced by reliance on entitlements. 
C) Welfare recipients opted to stop receiving payments without enrolling in workfare. 
D) A reduction in the tax base occurred that increased deficit spending on remaining welfare programs.

Question 12

David Ricardo,Karl Marx,and John Stuart Mill all agreed that a socialist economy would be more fair and more efficient.

Accepted Answer

A) True 
 B)False

Question 13

What was the origin of President Clinton's budget surplus from 1997-2000?

Accepted Answer

A) Offshoring led to lower production costs for businesses and thus created revenue. 
B) President Clinton created the surplus through "trickle-down" policies that stimulated growth. 
C) The surpluses primarily resulted from budget cuts instigated by the Clinton administration from 1994-1998. 
D) The surpluses were largely the result of booms in the high-tech and investment industries that generated higher tax revenues. 
A) Offshoring led to lower production costs for businesses and thus created revenue. 
B) President Clinton created the surplus through "trickle-down" policies that stimulated growth. 
C) The surpluses primarily resulted from budget cuts instigated by the Clinton administration from 1994-1998. 
D) The surpluses were largely the result of booms in the high-tech and investment industries that generated higher tax revenues.

Question 14

A neoclassical economist and a Keynesian economist would disagree most strongly about __________.

Accepted Answer

A) the problems of inflation 
B) the need to address recessions 
C) the benefits of deficit spending 
D) the importance of rational tax policy 
A) the problems of inflation 
B) the need to address recessions 
C) the benefits of deficit spending 
D) the importance of rational tax policy

Question 15

A government policy that gives homeowners a tax break that renters do not get could have which of these unintended effects?

Accepted Answer

A) It drives down rental rates,hurting landlords. 
B) It reduces tax revenues,deepening the national debt. 
C) It incentivizes homeownership,promoting the start of a housing bubble. 
D) It requires increased regulation,siphoning money from the private sector. 
A) It drives down rental rates,hurting landlords. 
B) It reduces tax revenues,deepening the national debt. 
C) It incentivizes homeownership,promoting the start of a housing bubble. 
D) It requires increased regulation,siphoning money from the private sector.

Question 16

Liberals and conservatives agree that it is problematic for the nation's healthcare system when __________.

Accepted Answer

A) health insurance companies deny coverage to people who want to buy policies 
B) copayments are so high that people who need care decide not to obtain that care 
C) spiraling government debt prevents welfare programs from addressing health care needs 
D) government regulations make it complicated for doctors to receive Medicare and Medicaid payments 
A) health insurance companies deny coverage to people who want to buy policies 
B) copayments are so high that people who need care decide not to obtain that care 
C) spiraling government debt prevents welfare programs from addressing health care needs 
D) government regulations make it complicated for doctors to receive Medicare and Medicaid payments

Question 17

Why was President Johnson reluctant to request a tax increase to pay for the Vietnam War?

Accepted Answer

A) He had just gotten a tax cut through Congress in 1964. 
B) He felt it was an unjust and emotionally taxing conflict. 
C) He wanted to avoid blame for a war he knew the U.S.couldn't win. 
D) He saw U.S.involvement as the fault of the Kennedy administration. 
A) He had just gotten a tax cut through Congress in 1964. 
B) He felt it was an unjust and emotionally taxing conflict. 
C) He wanted to avoid blame for a war he knew the U.S.couldn't win. 
D) He saw U.S.involvement as the fault of the Kennedy administration.

Question 18

President Nixon took the United States off of the gold standard.

Accepted Answer

A) True 
 B)False

Question 19

Moral hazard is created when the government __________.

Accepted Answer

A) lowers taxes hoping to increase tax revenue 
B) uses deficit spending to stimulate the economy 
C) assumes the financial risks of the private sector 
D) provides payments that reduce incentives to work 
A) lowers taxes hoping to increase tax revenue 
B) uses deficit spending to stimulate the economy 
C) assumes the financial risks of the private sector 
D) provides payments that reduce incentives to work

Question 20

Which statement describes the role that derivatives trading played in the recent housing market bubble?

Accepted Answer

A) "Deriving" their value from real estate speculation,derivatives created a volatile value system. 
B) Derivatives fluctuate widely in value,which led many investors to buy,only to lose large sums upon downward fluctuation. 
C) Derivatives forced many banking institutions to sell or close,condensing the control of the finance industry into a few small hands. 
D) Derivatives became so complex that no one could understand them,which masked losses and made assets extremely difficult to evaluate. 
A) "Deriving" their value from real estate speculation,derivatives created a volatile value system. 
B) Derivatives fluctuate widely in value,which led many investors to buy,only to lose large sums upon downward fluctuation. 
C) Derivatives forced many banking institutions to sell or close,condensing the control of the finance industry into a few small hands. 
D) Derivatives became so complex that no one could understand them,which masked losses and made assets extremely difficult to evaluate.

Someone participating in a workfare program is likely to end up __________.

Which of these is the best example of Keynesianism?

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

Which statement explains how Medicare differs from Medicaid?

Welfare programs are likely to produce welfare dependency when they __________.

The Federal Reserve Board would address a sudden rise in the inflation rate by __________.

The 1973 Mideast war allowed members of the Organization of Petroleum Exporting Countries (OPEC)to __________.

How does the American welfare state compare to those of other industrialized nations?

President Clinton's 1996 entitlement reforms gave welfare recipients two years to get off government assistance.

Which of these ideas best supports the argument that the government should take a limited role in the economy?

President Clinton's 1996 welfare reform effort would be seen as a failure by liberals if it resulted in which of the following?

David Ricardo,Karl Marx,and John Stuart Mill all agreed that a socialist economy would be more fair and more efficient.

What was the origin of President Clinton's budget surplus from 1997-2000?

A neoclassical economist and a Keynesian economist would disagree most strongly about __________.

A government policy that gives homeowners a tax break that renters do not get could have which of these unintended effects?

Liberals and conservatives agree that it is problematic for the nation's healthcare system when __________.

Why was President Johnson reluctant to request a tax increase to pay for the Vietnam War?

President Nixon took the United States off of the gold standard.

Moral hazard is created when the government __________.

Which statement describes the role that derivatives trading played in the recent housing market bubble?

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Exam 15: Political Economy

Someone participating in a workfare program is likely to end up __________.

Which of these is the best example of Keynesianism?

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

Which statement explains how Medicare differs from Medicaid?

Welfare programs are likely to produce welfare dependency when they __________.

The Federal Reserve Board would address a sudden rise in the inflation rate by __________.

The 1973 Mideast war allowed members of the Organization of Petroleum Exporting Countries (OPEC)to __________.

How does the American welfare state compare to those of other industrialized nations?

President Clinton's 1996 entitlement reforms gave welfare recipients two years to get off government assistance.

Which of these ideas best supports the argument that the government should take a limited role in the economy?

President Clinton's 1996 welfare reform effort would be seen as a failure by liberals if it resulted in which of the following?

David Ricardo,Karl Marx,and John Stuart Mill all agreed that a socialist economy would be more fair and more efficient.

What was the origin of President Clinton's budget surplus from 1997-2000?

A neoclassical economist and a Keynesian economist would disagree most strongly about __________.

A government policy that gives homeowners a tax break that renters do not get could have which of these unintended effects?

Liberals and conservatives agree that it is problematic for the nation's healthcare system when __________.

Why was President Johnson reluctant to request a tax increase to pay for the Vietnam War?

President Nixon took the United States off of the gold standard.

Moral hazard is created when the government __________.

Which statement describes the role that derivatives trading played in the recent housing market bubble?

Politics and Political Science

Political Ideologies

States

Constitutions and Rights

Regimes

Political Culture

Public Opinion

Political Communication

Interest Groups

Parties

Elections

Legislatures

Executives and Bureaucracies

Judiciaries

Violence and Revolution

International Relations

Filters