Question 1

The military industrial complex is the result of governmental contracting.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a power of the Federal Reserve Board?

Accepted Answer

A)  the power to increase or decrease the interest rate it charges on the loans it extends to member banks 
B)  the power to control the reserve requirement 
C)  the power to buy and sell government securities in order to increase or decrease the supply of money in the economy 
D)  the power to manipulate the interest rate charge by one bank to another on loans in the federal funds market 
E)  the power to enforce the federal government's antitrust policies 
A)  the power to increase or decrease the interest rate it charges on the loans it extends to member banks 
B)  the power to control the reserve requirement 
C)  the power to buy and sell government securities in order to increase or decrease the supply of money in the economy 
D)  the power to manipulate the interest rate charge by one bank to another on loans in the federal funds market 
E)  the power to enforce the federal government's antitrust policies

Question 3

The index of the total output of goods and services produced in a national economy is called the

Accepted Answer

A)  federal funds rate. 
B)  inflation index. 
C)  gross domestic product. 
D)  monetary fund. 
E)  consumer price index. 
A)  federal funds rate. 
B)  inflation index. 
C)  gross domestic product. 
D)  monetary fund. 
E)  consumer price index.

Question 4

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. 
E)  regulate contractual negotiations between private businesses competing in the same industry. 
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. 
E)  regulate contractual negotiations between private businesses competing in the same industry.

Question 5

______ were the centerpiece of George W. Bush's economic policy.

Accepted Answer

A)  Protective tariffs 
B)  Tax cuts 
C)  Antiglobalization measures 
D)  Agriculture subsidies 
E)  Categorical grants 
A)  Protective tariffs 
B)  Tax cuts 
C)  Antiglobalization measures 
D)  Agriculture subsidies 
E)  Categorical grants

Question 6

Which of the following has not been a major goal of the government's involvement in the economy?

Accepted Answer

A)  promoting economic equity and fairness for all citizens 
B)  promoting economic stability 
C)  encouraging business development and innovation 
D)  stimulating economic growth 
E)  protecting employees and consumers 
A)  promoting economic equity and fairness for all citizens 
B)  promoting economic stability 
C)  encouraging business development and innovation 
D)  stimulating economic growth 
E)  protecting employees and consumers

Question 7

If a new tax on luxury goods, such as sports cars, boats, and helicopters, were passed in order to reduce the disparities between the highest and lowest income brackets, we would refer to this as a(n)

Accepted Answer

A)  entitlement program. 
B)  tariff. 
C)  regressive tax policy. 
D)  policy of redistribution. 
E)  loophole. 
A)  entitlement program. 
B)  tariff. 
C)  regressive tax policy. 
D)  policy of redistribution. 
E)  loophole.

Question 8

During the 1960s, Ralph Nader was influential as a(n)

Accepted Answer

A)  environmental activist. 
B)  consumer advocate. 
C)  presidential candidate. 
D)  corporate spokesman. 
E)  member of Congress. 
A)  environmental activist. 
B)  consumer advocate. 
C)  presidential candidate. 
D)  corporate spokesman. 
E)  member of Congress.

Question 9

Which of the following was a driving force for economic growth during the late nineteenth century?

Accepted Answer

A)  agriculture 
B)  war 
C)  manufacturing industries 
D)  government work projects 
E)  international trade 
A)  agriculture 
B)  war 
C)  manufacturing industries 
D)  government work projects 
E)  international trade

Question 10

Write an essay explaining the different goals of economic policy. How have some of these goals changed over the course of American history? Why do economic policy goals often conflict with each other? Give an example.

Accepted Answer

Economic policy is a set of measures and

Question 11

The most consistently powerful nongovernment actors in determining economic policy are

Accepted Answer

A)  labor unions. 
B)  environmental groups. 
C)  business organizations. 
D)  foreign nations. 
E)  private citizens. 
A)  labor unions. 
B)  environmental groups. 
C)  business organizations. 
D)  foreign nations. 
E)  private citizens.

Question 12

A tax on a pack of cigarettes is a regressive tax.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following was not a result of the 2009 Copenhagen Summit?

Accepted Answer

A)  The meeting ended with no legally binding agreement between countries and no deadline set to reach one. 
B)  The meeting ended with a legally binding agreement between countries to limit greenhouse emissions across the world. 
C)  Wealthy nations agreed to provide annual funds to developing nations to help them integrate clean technology. 
D)  The meeting marked the first time the developing world, including major polluters such as China, committed to reducing their carbon output. 
E)  The meeting failed to set a global target for reducing greenhouse emissions. 
A)  The meeting ended with no legally binding agreement between countries and no deadline set to reach one. 
B)  The meeting ended with a legally binding agreement between countries to limit greenhouse emissions across the world. 
C)  Wealthy nations agreed to provide annual funds to developing nations to help them integrate clean technology. 
D)  The meeting marked the first time the developing world, including major polluters such as China, committed to reducing their carbon output. 
E)  The meeting failed to set a global target for reducing greenhouse emissions.

Question 14

When did Keynesian economic ideas lead to a revolution in thinking about the role of the government in the economy?

Accepted Answer

A)  the 1890s 
B)  the 1930s 
C)  the 1960s 
D)  the 1980s 
E)  the 1990s 
A)  the 1890s 
B)  the 1930s 
C)  the 1960s 
D)  the 1980s 
E)  the 1990s

Question 15

Which of the following is not a way in which the government promotes business development?

Accepted Answer

A)  subsidies 
B)  tax breaks 
C)  loans 
D)  regulations 
E)  grants 
A)  subsidies 
B)  tax breaks 
C)  loans 
D)  regulations 
E)  grants

Question 16

The important monetarist Milton Friedman argued that government regulation is an important way to fine-tune the economy.

Accepted Answer

A) True 
 B)False

Question 17

Most of the groundbreaking environmental laws were written in the

Accepted Answer

A)  1950s. 
B)  1970s. 
C)  1980s. 
D)  1990s. 
E)  2000s. 
A)  1950s. 
B)  1970s. 
C)  1980s. 
D)  1990s. 
E)  2000s.

Question 18

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)  rational choice theory. 
E)  monetarism. 
A)  laissez-faire economics. 
B)  Keynesianism. 
C)  social democracy. 
D)  rational choice theory. 
E)  monetarism.

Question 19

Economic policy is often very political. Assess some of the political dynamics at work in the drafting and implementation of economic policies. What have been some of the key American values promoted through economic policy?

Accepted Answer

Economic policy is indeed very political

Question 20

Which of the following is not one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?

Accepted Answer

A)  Compliance with environmental regulations can be very costly. 
B)  Federal environmental standards are often set "too high." 
C)  Who should bear the costs of providing environmental benefits? 
D)  Scientific evidence can change, making some environmental regulations obsolete. 
E)  Public opinion overwhelmingly favors economic interests over the environment. 
A)  Compliance with environmental regulations can be very costly. 
B)  Federal environmental standards are often set "too high." 
C)  Who should bear the costs of providing environmental benefits? 
D)  Scientific evidence can change, making some environmental regulations obsolete. 
E)  Public opinion overwhelmingly favors economic interests over the environment.

Exam 16: Government and the Economy

The military industrial complex is the result of governmental contracting.

Which of the following is not a power of the Federal Reserve Board?

The index of the total output of goods and services produced in a national economy is called the

The National Labor Relations Act was designed to

______ were the centerpiece of George W. Bush's economic policy.

Which of the following has not been a major goal of the government's involvement in the economy?

If a new tax on luxury goods, such as sports cars, boats, and helicopters, were passed in order to reduce the disparities between the highest and lowest income brackets, we would refer to this as a(n)

During the 1960s, Ralph Nader was influential as a(n)

Which of the following was a driving force for economic growth during the late nineteenth century?

Write an essay explaining the different goals of economic policy. How have some of these goals changed over the course of American history? Why do economic policy goals often conflict with each other? Give an example.

The most consistently powerful nongovernment actors in determining economic policy are

A tax on a pack of cigarettes is a regressive tax.

Which of the following was not a result of the 2009 Copenhagen Summit?

When did Keynesian economic ideas lead to a revolution in thinking about the role of the government in the economy?

Which of the following is not a way in which the government promotes business development?

The important monetarist Milton Friedman argued that government regulation is an important way to fine-tune the economy.

Most of the groundbreaking environmental laws were written in the

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

Economic policy is often very political. Assess some of the political dynamics at work in the drafting and implementation of economic policies. What have been some of the key American values promoted through economic policy?

Which of the following is not one of the concerns politicians have to consider when attempting to pass regulations that seek to protect the environment?

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