Question 1

The annual shortfall between federal revenues and expenditures is known as which of the following?

Accepted Answer

A) the balance of payments 
B) the budget deficit 
C) the expenditure difference 
D) the public/national debt 
A) the balance of payments 
B) the budget deficit 
C) the expenditure difference 
D) the public/national debt B

Question 2

The tax burden in the United States is modest compared to burdens in other advanced democracies.

Accepted Answer

A) True 
 B)False  True

Question 3

The money supply __________ when the Federal Reserve Board increases interest rates.

Accepted Answer

tightens / decreases / is limited

Question 4

Tax revenues lost to the federal government because of exemptions,exclusions,deductions,and special treatments in tax laws are called __________.

Accepted Answer

A) tax evasion 
B) tax expenditures 
C) tax avoidance 
D) loop holes 
A) tax evasion 
B) tax expenditures 
C) tax avoidance 
D) loop holes

Question 5

If you believe in the marginal utility theory-that an additional dollar of income is slightly less valuable to an individual than preceding dollars-then what form of taxation would you most likely support?

Accepted Answer

A) flat taxation 
B) marginal taxation 
C) progressive taxation 
D) proportional taxation 
A) flat taxation 
B) marginal taxation 
C) progressive taxation 
D) proportional taxation

Question 6

George W.Bush came into office strongly committed to __________.

Accepted Answer

A) raising the top marginal rate to 35 percent 
B) raising tax rates in an effort to compromise with the Democrats 
C) restructuring rates to just three brackets-10,28,and 35 percent 
D) lowering taxes 
A) raising the top marginal rate to 35 percent 
B) raising tax rates in an effort to compromise with the Democrats 
C) restructuring rates to just three brackets-10,28,and 35 percent 
D) lowering taxes

Question 7

In the federal budget,entitlement programs are an example of __________.

Accepted Answer

A) deficit spending 
B) discretionary spending 
C) defense spending 
D) mandatory spending 
A) deficit spending 
B) discretionary spending 
C) defense spending 
D) mandatory spending

Question 8

__________ taxation requires high-income groups to pay a larger percentage of their incomes in taxes than low-income groups.

Accepted Answer

The answer of __________ taxation requires high-income groups to pay...

Question 9

The main goal of fiscal policy is to __________.

Accepted Answer

A) affect how much money is available to foreign governments for investment 
B) affect how much money is available to state governments for capital projects 
C) determine how much interest the government will pay on the federal debt 
D) use taxes and government spending to help stimulate or slow down economic growth 
A) affect how much money is available to foreign governments for investment 
B) affect how much money is available to state governments for capital projects 
C) determine how much interest the government will pay on the federal debt 
D) use taxes and government spending to help stimulate or slow down economic growth

Question 10

Which of the following transactions would be counted in calculating the GDP?

Accepted Answer

A) a pension payment 
B) a payment to Social Security 
C) the purchase of a new car 
D) the purchase of steel by the Ford Motor Company 
A) a pension payment 
B) a payment to Social Security 
C) the purchase of a new car 
D) the purchase of steel by the Ford Motor Company

Question 11

When the economy experiences two or more quarters of negative growth,it has fallen into a ___________.

Accepted Answer

The answer of When the economy experiences two or more...

Question 12

The primary purpose of the Troubled Asset Relief Program (TARP)was to __________.

Accepted Answer

A) bail out the auto industry 
B) bail out the banking sector 
C) reduce the annual budget deficit 
D) reduce the public/national debt 
A) bail out the auto industry 
B) bail out the banking sector 
C) reduce the annual budget deficit 
D) reduce the public/national debt

Question 13

The question of the proper relationship between governments and markets is the subject of __________.

Accepted Answer

A) the American dilemma 
B) great debate 
C) partisan disagreement 
D) political economy 
A) the American dilemma 
B) great debate 
C) partisan disagreement 
D) political economy

Question 14

What is the primary tool that monetary policy uses to affect the overall economy?

Accepted Answer

A) foreign monetary investment 
B) government spending 
C) labor regulations 
D) money supply 
A) foreign monetary investment 
B) government spending 
C) labor regulations 
D) money supply

Question 15

Which of the following was the biggest contributor to the economic crisis that began in 2008?

Accepted Answer

A) deregulation of the investment banking industry 
B) high levels of government spending 
C) increased wage demands by labor unions 
D) inflationary policies by the Federal Reserve 
A) deregulation of the investment banking industry 
B) high levels of government spending 
C) increased wage demands by labor unions 
D) inflationary policies by the Federal Reserve

Question 16

__________ refers to the taxing,spending,and borrowing activities of the national government.

Accepted Answer

The answer of __________ refers to the taxing,spending,and borrowing activities...

Question 17

The federal stimulus package is generally referred to as TANF.

Accepted Answer

A) True 
 B)False

Question 18

If you believed strongly that initiative,enterprise,and risk taking is necessary to stimulate the economy,which form of taxation would you most likely support?

Accepted Answer

A) bracket-based taxation 
B) flat taxation 
C) progressive taxation 
D) proportional taxation 
A) bracket-based taxation 
B) flat taxation 
C) progressive taxation 
D) proportional taxation

Question 19

Which of the following industries was probably the biggest contributor to the economic crisis that began in 2008?

Accepted Answer

A) the airline industry 
B) the energy industry 
C) the investment banking industry 
D) the litigation industry 
A) the airline industry 
B) the energy industry 
C) the investment banking industry 
D) the litigation industry

Question 20

Which of the following is a nation's total production of goods and services for a single year,valued in terms of market prices?

Accepted Answer

A) gross domestic product 
B) national debt 
C) stimulus package 
D) deficit 
A) gross domestic product 
B) national debt 
C) stimulus package 
D) deficit

The annual shortfall between federal revenues and expenditures is known as which of the following?

The tax burden in the United States is modest compared to burdens in other advanced democracies.

The money supply __________ when the Federal Reserve Board increases interest rates.

Tax revenues lost to the federal government because of exemptions,exclusions,deductions,and special treatments in tax laws are called __________.

If you believe in the marginal utility theory-that an additional dollar of income is slightly less valuable to an individual than preceding dollars-then what form of taxation would you most likely support?

George W.Bush came into office strongly committed to __________.

In the federal budget,entitlement programs are an example of __________.

__________ taxation requires high-income groups to pay a larger percentage of their incomes in taxes than low-income groups.

The main goal of fiscal policy is to __________.

Which of the following transactions would be counted in calculating the GDP?

When the economy experiences two or more quarters of negative growth,it has fallen into a ___________.

The primary purpose of the Troubled Asset Relief Program (TARP)was to __________.

The question of the proper relationship between governments and markets is the subject of __________.

What is the primary tool that monetary policy uses to affect the overall economy?

Which of the following was the biggest contributor to the economic crisis that began in 2008?

__________ refers to the taxing,spending,and borrowing activities of the national government.

The federal stimulus package is generally referred to as TANF.

If you believed strongly that initiative,enterprise,and risk taking is necessary to stimulate the economy,which form of taxation would you most likely support?

Which of the following industries was probably the biggest contributor to the economic crisis that began in 2008?

Which of the following is a nation's total production of goods and services for a single year,valued in terms of market prices?

Politics: Who Gets What,When and How 1

Political Culture: Ideas in Conflict

The Constitution: Limiting Governmental Power

Federalism: Dividing Governmental Power

Opinion and Participation: Thinking and Acting in Politics

Mass Media: Setting the Political Agenda

Political Parties: Organizing Politics

Campaigns and Elections: Deciding Who Governs

Interest Groups: Getting Their Share and More

Congress: Politics on Capitol Hill

The President: White House Politics

The Bureaucracy: Bureaucratic Politics

Courts Judicial Politics

Politics and Personal Liberty

Politics and Civil Rights

Politics and Social Welfare

Politics and National Security

Filters

Exam 16: Politics and the Economy

The annual shortfall between federal revenues and expenditures is known as which of the following?

The tax burden in the United States is modest compared to burdens in other advanced democracies.

The money supply __________ when the Federal Reserve Board increases interest rates.

Tax revenues lost to the federal government because of exemptions,exclusions,deductions,and special treatments in tax laws are called __________.

If you believe in the marginal utility theory-that an additional dollar of income is slightly less valuable to an individual than preceding dollars-then what form of taxation would you most likely support?

George W.Bush came into office strongly committed to __________.

In the federal budget,entitlement programs are an example of __________.

__________ taxation requires high-income groups to pay a larger percentage of their incomes in taxes than low-income groups.

The main goal of fiscal policy is to __________.

Which of the following transactions would be counted in calculating the GDP?

When the economy experiences two or more quarters of negative growth,it has fallen into a ___________.

The primary purpose of the Troubled Asset Relief Program (TARP)was to __________.

The question of the proper relationship between governments and markets is the subject of __________.

What is the primary tool that monetary policy uses to affect the overall economy?

Which of the following was the biggest contributor to the economic crisis that began in 2008?

__________ refers to the taxing,spending,and borrowing activities of the national government.

The federal stimulus package is generally referred to as TANF.

If you believed strongly that initiative,enterprise,and risk taking is necessary to stimulate the economy,which form of taxation would you most likely support?

Which of the following industries was probably the biggest contributor to the economic crisis that began in 2008?

Which of the following is a nation's total production of goods and services for a single year,valued in terms of market prices?

Politics: Who Gets What,When and How 1

Political Culture: Ideas in Conflict

The Constitution: Limiting Governmental Power

Federalism: Dividing Governmental Power

Opinion and Participation: Thinking and Acting in Politics

Mass Media: Setting the Political Agenda

Political Parties: Organizing Politics

Campaigns and Elections: Deciding Who Governs

Interest Groups: Getting Their Share and More

Congress: Politics on Capitol Hill

The President: White House Politics

The Bureaucracy: Bureaucratic Politics

Courts Judicial Politics

Politics and Personal Liberty

Politics and Civil Rights

Politics and Social Welfare

Politics and National Security

Filters