Question 1

Which of these statements expresses a common misperception about the American welfare state?

Accepted Answer

A) The middle class increasingly relies on welfare programs. 
B) Welfare spending is largely responsible for growth of the national debt. 
C) President Clinton's welfare reform made the problem of welfare dependency worse. 
D) The United States spends less on welfare than most other advanced industrial nations. 
A) The middle class increasingly relies on welfare programs. 
B) Welfare spending is largely responsible for growth of the national debt. 
C) President Clinton's welfare reform made the problem of welfare dependency worse. 
D) The United States spends less on welfare than most other advanced industrial nations.

Question 2

According to the U.S.Labor Department,the poverty line is __________.

Accepted Answer

A) three times a city's minimal lodging budget 
B) twice a minimal food budget plus $400 for lodging 
C) four times minimal living expenses for an urban family of five 
D) three times a minimal food budget for nonfarm families of four 
A) three times a city's minimal lodging budget 
B) twice a minimal food budget plus $400 for lodging 
C) four times minimal living expenses for an urban family of five 
D) three times a minimal food budget for nonfarm families of four

Question 3

Most economists want the government to create economic equity even if that means sacrificing prosperity.

Accepted Answer

A) True 
 B)False

Question 4

In response to the 2008 economic crisis,President Bush favored a massive spending program to shore up shaky banks.Which statement explains how this is an example of Keynesian economics?

Accepted Answer

A) Keynes favored policies that could be implemented and changed quickly. 
B) Keynes believed that a stable banking system was the key to economic stability. 
C) According to Keynes,governments can best address recessions through deficit spending. 
D) According to Keynes,the private sector will always mimic the economic behavior of the government. 
A) Keynes favored policies that could be implemented and changed quickly. 
B) Keynes believed that a stable banking system was the key to economic stability. 
C) According to Keynes,governments can best address recessions through deficit spending. 
D) According to Keynes,the private sector will always mimic the economic behavior of the government.

Question 5

Which statement characterizes John Maynard Keynes' approach to economic management?

Accepted Answer

A) Keynes advocated "trickle down" economic policies. 
B) Keynes proposed dampening the swings of the business cycle. 
C) Keynes argued for stronger stimulus packages to corporations and small businesses. 
D) Keynes suggested infusing the economy with government funds to promote spending. 
A) Keynes advocated "trickle down" economic policies. 
B) Keynes proposed dampening the swings of the business cycle. 
C) Keynes argued for stronger stimulus packages to corporations and small businesses. 
D) Keynes suggested infusing the economy with government funds to promote spending.

Question 6

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

Accepted Answer

A) too big to fail 
B) destined for profit 
C) inherently successful 
D) practically invincible 
A) too big to fail 
B) destined for profit 
C) inherently successful 
D) practically invincible

Question 7

Which of these people is least likely to complain about high taxes?

Accepted Answer

A) a taxpayer who qualifies for the Earned Income Tax Credit 
B) an investor who suffered losses when an economic bubble burst 
C) a small business owner who hires people through the workfare program 
D) an executive for a company with a large number of government contracts 
A) a taxpayer who qualifies for the Earned Income Tax Credit 
B) an investor who suffered losses when an economic bubble burst 
C) a small business owner who hires people through the workfare program 
D) an executive for a company with a large number of government contracts

Question 8

Entitlements differ from welfare because __________.

Accepted Answer

A) entitlements cost less 
B) entitlements benefit the wealthy 
C) welfare is more efficient to administer 
D) welfare is a form of discretionary spending 
A) entitlements cost less 
B) entitlements benefit the wealthy 
C) welfare is more efficient to administer 
D) welfare is a form of discretionary spending

Question 9

How do American and Canadian views differ on the size of government?

Accepted Answer

A) Americans believe the government is too small,while Canadians feel that government intrudes on individual privacy. 
B) As similar democratic nations located in North America,both Americans and Canadians feel that government is too large. 
C) Americans and Canadians generally agree that government should be larger,funding welfare programs such as Medicaid and Food Stamps. 
D) Many Americans believe government is too large,while Canadians recognize that government has a pivotal role to play and accept higher taxes. 
A) Americans believe the government is too small,while Canadians feel that government intrudes on individual privacy. 
B) As similar democratic nations located in North America,both Americans and Canadians feel that government is too large. 
C) Americans and Canadians generally agree that government should be larger,funding welfare programs such as Medicaid and Food Stamps. 
D) Many Americans believe government is too large,while Canadians recognize that government has a pivotal role to play and accept higher taxes.

Question 10

The Vietnam War contributed to the high inflation of the 1960s because it __________.

Accepted Answer

A) diverted money from the private sector 
B) increased spending without an increase in productivity 
C) led to higher taxes that pushed down the real value of wages 
D) pushed up interest rates as private borrowers competed with the government 
A) diverted money from the private sector 
B) increased spending without an increase in productivity 
C) led to higher taxes that pushed down the real value of wages 
D) pushed up interest rates as private borrowers competed with the government

Question 11

In 2014,the federal poverty line was set at __________.

Accepted Answer

A) $14,505 
B) $17,060 
C) $23,550 
D) $29,950 
A) $14,505 
B) $17,060 
C) $23,550 
D) $29,950

Question 12

Investment bubbles are problematic for which of these reasons?

Accepted Answer

A) People with lower incomes are unable to participate. 
B) Growth happens so quickly that people tend to ignore risks. 
C) Investors pump too much money into the economy all at once. 
D) The government assumes all of the risk of speculative behavior. 
A) People with lower incomes are unable to participate. 
B) Growth happens so quickly that people tend to ignore risks. 
C) Investors pump too much money into the economy all at once. 
D) The government assumes all of the risk of speculative behavior.

Question 13

The federal government's efforts to deregulate the financial industry during the late-1990s and early-2000s followed the advice of __________.

Accepted Answer

A) Keynesian economists 
B) neoclassical economists 
C) left-leaning policy makers 
D) the Federal Reserve Board 
A) Keynesian economists 
B) neoclassical economists 
C) left-leaning policy makers 
D) the Federal Reserve Board

Question 14

The Earned Income Tax Credit addresses the issue of __________.

Accepted Answer

A) stagflation 
B) offshoring 
C) moral hazard 
D) welfare dependency 
A) stagflation 
B) offshoring 
C) moral hazard 
D) welfare dependency

Question 15

Which term characterizes President Bush's policy of pumping billions of federal dollars into shaky banks and firms in response to the 2008 financial crisis?

Accepted Answer

A) conservative 
B) Keynesian 
C) Marxist 
D) neoclassical 
A) conservative 
B) Keynesian 
C) Marxist 
D) neoclassical

Question 16

Which of these is a liberal argument against the Affordable Care Act?

Accepted Answer

A) It results in many recipients losing their other welfare benefits. 
B) It benefits not just the poor but the middle class and the wealthy. 
C) It provides subsidies to individuals and companies that do not need financial help. 
D) It does not include the kind of public option that would make health insurance truly affordable. 
A) It results in many recipients losing their other welfare benefits. 
B) It benefits not just the poor but the middle class and the wealthy. 
C) It provides subsidies to individuals and companies that do not need financial help. 
D) It does not include the kind of public option that would make health insurance truly affordable.

Question 17

Which of these is true about entitlement spending in the United States?

Accepted Answer

A) Most entitlement spending goes to people who are not poor. 
B) Most entitlement spending goes to people who live in extreme poverty. 
C) Most forms of entitlement spending benefit businesses instead of individuals. 
D) Most forms of entitlement spending go to military personnel and defense contractors. 
A) Most entitlement spending goes to people who are not poor. 
B) Most entitlement spending goes to people who live in extreme poverty. 
C) Most forms of entitlement spending benefit businesses instead of individuals. 
D) Most forms of entitlement spending go to military personnel and defense contractors.

Question 18

Suppose a country's economy has recently suffered a contraction and a spike in unemployment.A Keynesian would recommend __________.

Accepted Answer

A) increasing the minimum wage 
B) raising tariffs and lowering income taxes 
C) decreasing interest rates on government loans 
D) borrowing money to spend on new public works projects 
A) increasing the minimum wage 
B) raising tariffs and lowering income taxes 
C) decreasing interest rates on government loans 
D) borrowing money to spend on new public works projects

Question 19

The occurrence of stagflation during the 1970s demonstrated which of these points about the economy?

Accepted Answer

A) Tax cuts do not automatically reduce government revenue. 
B) Inflation is not necessarily accompanied by economic growth. 
C) Government policy can do little to impact economic performance. 
D) The private sector does not respond quickly to changes in government policy. 
A) Tax cuts do not automatically reduce government revenue. 
B) Inflation is not necessarily accompanied by economic growth. 
C) Government policy can do little to impact economic performance. 
D) The private sector does not respond quickly to changes in government policy.

Question 20

A neoclassical critic of Keynesianism would be most likely to make which of these arguments?

Accepted Answer

A) Economic downturns are largely a result of decreased productivity and not a slump in consumption as Keynesians believe. 
B) Keynesians are wrong to assert that higher taxes on the wealthy will stimulate consumer spending at the lower ends of the economy. 
C) Keynesian policy relies on politicians to decrease spending during economic boom times,but politicians are generally unwilling to do this. 
D) The economy does not respond to any type of government economic policy,so it is foolish to believe that the business cycle can be managed. 
A) Economic downturns are largely a result of decreased productivity and not a slump in consumption as Keynesians believe. 
B) Keynesians are wrong to assert that higher taxes on the wealthy will stimulate consumer spending at the lower ends of the economy. 
C) Keynesian policy relies on politicians to decrease spending during economic boom times,but politicians are generally unwilling to do this. 
D) The economy does not respond to any type of government economic policy,so it is foolish to believe that the business cycle can be managed.

Which of these statements expresses a common misperception about the American welfare state?

According to the U.S.Labor Department,the poverty line is __________.

Most economists want the government to create economic equity even if that means sacrificing prosperity.

In response to the 2008 economic crisis,President Bush favored a massive spending program to shore up shaky banks.Which statement explains how this is an example of Keynesian economics?

Which statement characterizes John Maynard Keynes' approach to economic management?

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

Which of these people is least likely to complain about high taxes?

Entitlements differ from welfare because __________.

How do American and Canadian views differ on the size of government?

The Vietnam War contributed to the high inflation of the 1960s because it __________.

In 2014,the federal poverty line was set at __________.

Investment bubbles are problematic for which of these reasons?

The federal government's efforts to deregulate the financial industry during the late-1990s and early-2000s followed the advice of __________.

The Earned Income Tax Credit addresses the issue of __________.

Which term characterizes President Bush's policy of pumping billions of federal dollars into shaky banks and firms in response to the 2008 financial crisis?

Which of these is a liberal argument against the Affordable Care Act?

Which of these is true about entitlement spending in the United States?

Suppose a country's economy has recently suffered a contraction and a spike in unemployment.A Keynesian would recommend __________.

The occurrence of stagflation during the 1970s demonstrated which of these points about the economy?

A neoclassical critic of Keynesianism would be most likely to make which of these arguments?

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Exam 15: Political Economy

Which of these statements expresses a common misperception about the American welfare state?

According to the U.S.Labor Department,the poverty line is __________.

Most economists want the government to create economic equity even if that means sacrificing prosperity.

In response to the 2008 economic crisis,President Bush favored a massive spending program to shore up shaky banks.Which statement explains how this is an example of Keynesian economics?

Which statement characterizes John Maynard Keynes' approach to economic management?

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

Which of these people is least likely to complain about high taxes?

Entitlements differ from welfare because __________.

How do American and Canadian views differ on the size of government?

The Vietnam War contributed to the high inflation of the 1960s because it __________.

In 2014,the federal poverty line was set at __________.

Investment bubbles are problematic for which of these reasons?

The federal government's efforts to deregulate the financial industry during the late-1990s and early-2000s followed the advice of __________.

The Earned Income Tax Credit addresses the issue of __________.

Which term characterizes President Bush's policy of pumping billions of federal dollars into shaky banks and firms in response to the 2008 financial crisis?

Which of these is a liberal argument against the Affordable Care Act?

Which of these is true about entitlement spending in the United States?

Suppose a country's economy has recently suffered a contraction and a spike in unemployment.A Keynesian would recommend __________.

The occurrence of stagflation during the 1970s demonstrated which of these points about the economy?

A neoclassical critic of Keynesianism would be most likely to make which of these arguments?

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