Question 1

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

Question 2

The federal government did not become actively involved in elementary education policy until the 1950s.

Accepted Answer

A) True 
 B)False

Question 3

What event brought federal attention to elementary school education?

Accepted Answer

A)  the fear that the Soviets were winning the Cold War through better technology 
B)  low levels of literacy in America's inner cities 
C)  the return of veterans at the end of World War II 
D)  the Great Depression 
E)  the fear that the Japanese were outperforming American students in math and science

Question 4

Which of the following groups are more than twice as likely as other Americans to be below the poverty line?

Accepted Answer

A)  African Americans 
B)  children 
C)  the elderly 
D)  Hispanics and Latinos 
E)  single mothers

Question 5

Which of the following social policies is currently the most costly to the government?

Accepted Answer

A)  Social Security 
B)  food stamps 
C)  public housing assistance 
D)  Temporary Assistance to Needy Families 
E)  Medicare

Question 6

The periodic adjustment of benefits or wages that takes into account the increased cost of living is called:

Accepted Answer

A)  means testing 
B)  indexing 
C)  graphing 
D)  economic tabulating 
E)  inflation

Question 7

Americans do not benefit equally from social programs.Describe and analyze the distribution of government benefits.What groups benefit the most and from what type of programs? Who receives the fewest benefits,and why is this so?

Accepted Answer

The answer of Americans do not benefit equally from social...

Question 8

Describe some of the different tools and techniques that the federal government has at its disposal for regulating and effecting economic policy.What are monetary policies? Fiscal policies? What are other ways in which the government can encourage or compel businesses to behave in certain ways?

Accepted Answer

The answer of Describe some of the different tools and...

Question 9

Which of the following least explains why the elderly receive a large share of social benefits?

Accepted Answer

A)  The elderly make up a large proportion of the population. 
B)  The elderly are perceived as deserving benefits. 
C)  The elderly have developed strong interest groups and lobbying techniques. 
D)  Most members of Congress are themselves elderly or soon will be. 
E)  The elderly tend to vote more than younger people.

Question 10

Medicare is a ______ program; Medicaid is a ______ program.

Accepted Answer

A)  noncontributory; contributory 
B)  contributory; noncontributory 
C)  contributory; contributory 
D)  noncontributory; noncontributory 
E)  existing; now defunct

Question 11

Children and the working poor receive the fewest benefits from government social policies.

Accepted Answer

A) True 
 B)False

Question 12

The GI Bill of Rights of 1944 and the National Defense Education Act were examples of:

Accepted Answer

A)  the federal government's attempt to recruit more soldiers to the armed forces prior to World War II 
B)  the federal government's attempt to improve national security during the Cold War 
C)  the federal government's approach to education policy during the 1940s and 1950s 
D)  the numerous amendments made to the Constitution in order to protect the rights of veterans of foreign wars 
E)  the kinds of proposals made by Ronald Reagan when he ran for president in 1980

Question 13

If the Federal Reserve wants to help boost a sagging economy,which one of the following is the most direct way it can do this?

Accepted Answer

A)  raise interest rates so that banks can earn more money on the loans they provide to individuals and businesses 
B)  lower interest rates so that banks can provide more loans at cheaper rates to individuals and businesses 
C)  take money out of circulation so that the dollar becomes more valuable 
D)  raise the reserve requirement, restricting the amount of cash and negotiable securities banks must have on hand 
E)  lower tariffs so that corporations can trade more freely with foreign countries.

Question 14

______ are government grants of cash or other valuable commodities,such as land,used to promote activities desired by the government.

Accepted Answer

A)  Contracts 
B)  Tax credits 
C)  Business development funds 
D)  Categorical grants 
E)  Subsidies

Question 15

The Temporary Assistance to Needy Families program is administered:

Accepted Answer

A)  by the federal government 
B)  by the states, with uniform benefit levels set by the federal government 
C)  by the states, with benefit levels varying between states 
D)  through private agencies with governmental contracts 
E)  by the federal government, with benefit levels varying between states

Question 16

The goals of social policy:

Accepted Answer

A)  reflect changing views about which risks should be borne by the individual, or shared by society 
B)  have been consistent since the early twentieth century 
C)  are determined by the political party that controls the White House 
D)  are clearly laid out in the Constitution 
E)  are consistent across the different states of the United States

Question 17

Which of the following is NOT a reason the working poor receive such a small amount of social policy benefits?

Accepted Answer

A)  They are often too poor to enjoy the subsidies of the shadow welfare state. 
B)  Because they are employed, they cannot receive assistance through Temporary Assistance for Needy Families. 
C)  The working poor are not a well-organized political force. 
D)  The working poor are often considered undeserving by public opinion. 
E)  They are often renters and do not benefit from government programs that help homeowners.

Question 18

Which of the following is NOT a problem with the current health care system in the United States?

Accepted Answer

A)  An increasing number of workers cannot afford health insurance coverage. 
B)  Many small employers cannot afford to offer health care benefits to their employees. 
C)  Medicaid is under increasing fiscal strain due to rising health care costs. 
D)  Medicare is under increasing fiscal strain due to rising health care costs. 
E)  Local governments are forced to pay the health care costs of all unemployed Americans.

Question 19

Which of the following statements is incorrect?

Accepted Answer

A)  Women are more likely to be poor than men. 
B)  African Americans have experienced twice as much unemployment as other Americans. 
C)  The poverty rates for African Americans and Hispanic Americans are more than double that of non-Hispanic white Americans. 
D)  Minorities are less likely to have access to the shadow welfare state. 
E)  Men are more likely to be poor than women.

Question 20

Which of the following programs most benefits the working poor?

Accepted Answer

A)  earned income tax credits 
B)  Medicaid 
C)  Temporary Assistance for Needy Families 
D)  subsidized student loans 
E)  Social Security

Exam 13: Domestic Policy