Question 1

Identify the United States presidential candidate who famously used the slogan, "It's the economy, stupid!"

Accepted Answer

A) Ronald Reagan 
B) Walter Mondale 
C) Bill Clinton 
D) Bob Dole

Question 2

Characterize President Bush's favored economic policy of pumping billions of federal dollars into shaky banks and firms.

Accepted Answer

A) Smithian 
B) Marxist 
C) Keynesian 
D) Millian

Question 3

The classical economists of the late eighteenth and nineteenth centuries-Adam Smith, David Ricardo, John Stuart Mill, and Karl Marx-all wrote on what they called socialist economies.

Accepted Answer

A) True 
 B)False

Question 4

Early twentieth-century European governments subscribed to __________ doctrines, generally keeping their hands away from the economy.

Accepted Answer

A) classic liberal 
B) inflationary 
C) neoclassical 
D) Smithian

Question 5

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

Accepted Answer

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

Question 6

The __________ administration simplified the Food Stamps program by eliminating the provision that recipients buy the stamps at a discount with their own money.

Accepted Answer

A) Kennedy 
B) Johnson 
C) Ford 
D) Carter

Question 7

One major problem with Medicaid is the large amount of it that ends up in the hands of fraudsters.

Accepted Answer

A) True 
 B)False

Question 8

Examine the outcome of recent spending cuts and the tax hikes on the wealthiest one percent of Americans, instigated by the Obama administration.

Accepted Answer

A) Middle class Americans benefitted from lower taxes and more jobs. 
B) The compromise satisfied few and "kicked the can down the road" for likely repeats every few months. 
C) Angry Republicans struck back during the following fiscal cliff, creating gridlock and threatening government shutdown. 
D) Democrats were satisfied with the cuts and tax hikes, but Republicans were left with much to explain to their wealthy constituents.

Question 9

Despite its extensive welfare programs, New York City maintains a high degree of poverty.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an increasing financial concern of the Medicare program?

Accepted Answer

A) The proportion of older people in American society is increasing steadily. 
B) Every American citizen on reaching 65 obtains Medicare, regardless of class. 
C) Economic inequality renders Medicare more necessary for some than for others. 
D) Wealthy Americans are taking advantage of the Medicare system.

Question 11

Describe how today's conservatives use the term "political economy."

Accepted Answer

A) Conservatives use the term to try to get back to the pure market system advocated by Adam Smith. 
B) Conservatives understand the term within the context of Machiavelli's The Prince. 
C) Conservatives veer toward John Stuart Mill's usage, which advocated utilitarianism. 
D) Conservatives take a neo-utilitarian approach, hoping to benefit the weakest members of society.

Question 12

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) Other nations allocate less to welfare than the United States. 
C) The United States allocates about the same to welfare. 
D) Few nations besides the United States maintain funds for welfare.

Question 13

U.S.federal expenditures mandated by law, such as Social Security and Medicare, are referred to as __________.

Accepted Answer

A) privileges 
B) entitlements 
C) benefits 
D) subsidies

Question 14

Between 1965 and 1973, the percentage of Americans living below the poverty line __________.

Accepted Answer

A) doubled 
B) greatly decreased 
C) slightly increased 
D) rapidly increased

Question 15

Many Americans think the federal budget goes primarily toward welfare, which is __________.

Accepted Answer

A) absolutely True 
B) somewhat exaggerated 
C) not at all the case 
D) slightly offensive

Question 16

Why are many politicians wary about limiting Social Security and Medicare expenses?

Accepted Answer

A) Many would be left without enough to support them. 
B) Caps to these program would undermine the welfare state. 
C) It can cost them votes. 
D) Both are primary social safety nets.

Question 17

In 1996, President Clinton signed a major welfare reform that __________.

Accepted Answer

A) ended the Aid to Families with Dependent Children program that provided federal matching funds to the states to help the poor, mostly single mothers 
B) restructured the Food Stamps program to distribute aid only to citizens and families far below the poverty line 
C) reduced funding to the Women, Infants, and Children (WI
C) program, which provides healthy food options to mothers with young children 
D) introduced healthcare reforms, ensuring that all U.S. citizens under 24 years of age would be covered

Question 18

Radicals use the term "political economy" instead of __________ to describe their critique of capitalism and the inequitable distribution of wealth among nations.

Accepted Answer

A) Marxism 
B) laissez-faire 
C) public-choice 
D) Keynesian

Question 19

Differentiate between the rising costs of Medicare and Medicaid.

Accepted Answer

A) Medicare anticipates rising costs due to changing proportions of people over 65. 
B) Medicaid expects rising costs due to looming financial busts. 
C) Medicare plans to keep spending down by raising the eligibility age to 69. 
D) Medicaid hopes to beat rising costs by adjusting the poverty level.

Question 20

Investigate what historically happens to conservatives when firms are supposedly "too big to fail."

Accepted Answer

A) Conservatives argue for expensive bail-out packages. 
B) Most conservatives suggest letting the free market run its course. 
C) Most argue against expensive stimulus packages. 
D) They switch parties.

Exam 16: Political Economy

Identify the United States presidential candidate who famously used the slogan, "It's the economy, stupid!"

Characterize President Bush's favored economic policy of pumping billions of federal dollars into shaky banks and firms.

The classical economists of the late eighteenth and nineteenth centuries-Adam Smith, David Ricardo, John Stuart Mill, and Karl Marx-all wrote on what they called socialist economies.

Early twentieth-century European governments subscribed to __________ doctrines, generally keeping their hands away from the economy.

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

The __________ administration simplified the Food Stamps program by eliminating the provision that recipients buy the stamps at a discount with their own money.

One major problem with Medicaid is the large amount of it that ends up in the hands of fraudsters.

Examine the outcome of recent spending cuts and the tax hikes on the wealthiest one percent of Americans, instigated by the Obama administration.

Despite its extensive welfare programs, New York City maintains a high degree of poverty.

Which of the following is an increasing financial concern of the Medicare program?

Describe how today's conservatives use the term "political economy."

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

U.S.federal expenditures mandated by law, such as Social Security and Medicare, are referred to as __________.

Between 1965 and 1973, the percentage of Americans living below the poverty line __________.

Many Americans think the federal budget goes primarily toward welfare, which is __________.

Why are many politicians wary about limiting Social Security and Medicare expenses?

In 1996, President Clinton signed a major welfare reform that __________.

Radicals use the term "political economy" instead of __________ to describe their critique of capitalism and the inequitable distribution of wealth among nations.

Differentiate between the rising costs of Medicare and Medicaid.

Investigate what historically happens to conservatives when firms are supposedly "too big to fail."