Question 1

Which of the following statements is true?

Accepted Answer

A)   Democrats support higher levels of public spending than Republicans.
B)   Republicans' support for tax cuts creates a political dilemma for Democrats.
C)   Democrats support raising taxes on the wealthy.
D)   Republicans believe that government spending is wasteful and puts a drag on the economy.
E)   all of the above

Question 2

In order to have reliable information about the costs and impact of economic policies, Congress created the ________.

Accepted Answer

A)   Federal Reserve Board
B)   Office of Management and Budget
C)   Congressional Budget Office
D)   Congressional Oversight Commission
E)   Congressional Research Service

Question 3

Today, labor unions represent about ________ percent of the labor force.

Accepted Answer

A)   50
B)   35
C)   25
D)   11
E)   3

Question 4

Which of the following is NOT an example of mandatory spending?

Accepted Answer

A)   farm price supports
B)   Social Security payments
C)   defense spending
D)   Medicare
E)   interest payments on the national debt

Question 5

A way to reduce the disparities in wealth between the rich and poor is called a(n)  ________.

Accepted Answer

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

Question 6

During the nineteenth century, the federal government received most of its revenue from ________.

Accepted Answer

A)   corporate taxes
B)   personal income taxes
C)   social insurance taxes
D)   state and local governments
E)   tariffs

Question 7

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.

Question 8

Which of the following statements best characterizes the percentage of the federal budget that is spent on mandatory programs?

Accepted Answer

A)   Spending on mandatory programs increased between 1962 and 1990 but has decreased dramatically since 1990.
B)   Spending on mandatory programs decreased between 1962 and 1990 but has increased dramatically since 1990.
C)   Spending on mandatory programs has remained constant since 1970.
D)   Spending on mandatory programs has grown dramatically since 1970.
E)   Spending on mandatory programs has declined dramatically since 1970.

Question 9

The ________ insures bank deposits up to $250,000.

Accepted Answer

A)   Federal Reserve Board
B)   Federal Deposit Insurance Corporation
C)   U.S. Department of Treasury
D)   Office of Management and Budget
E)   Council of Economic Advisors

Question 10

________ film, An Inconvenient Truth, attracted broad attention to the issue of climate change in 2006.

Accepted Answer

A)   Bill Clinton's
B)   George W. Bush's
C)   Bob Dole's
D)   Al Gore's
E)   John McCain's

Question 11

Open-market operations describe the

Accepted Answer

A)   government policy, beginning in the 1950s, of reducing tariffs on foreign products.
B)   requirement that publicly owned businesses honestly report their earnings and losses.
C)   method by which the Federal Reserve buys and sells government securities to increase or decrease the supply of money in the economy.
D)   policy of deregulation pursued during the 1980s by the Reagan administration.
E)   way in which the U.S. government purchases stocks and bonds from foreign corporations.

Question 12

A ________ is an incentive in the tax code for individuals and corporations to invest their money in ways that government officials desire in exchange for a reduction in tax liabilities.

Accepted Answer

A)   categorical grant
B)   loophole
C)   federal funds rate
D)   block grant
E)   subsidy

Question 13

Why have politicians always favored using subsidies to promote certain economic activities?

Accepted Answer

A)   They can be treated as benefits that can be widely spread in response to many demands.
B)   They are generally cheaper than other forms of government support.
C)   Recipients are always required to pay back the subsidies.
D)   Congress does not have to pass legislation in order to provide subsidies.
E)   They are paid for through international tariffs rather than personal income taxes.

Question 14

Most of the groundbreaking environmental laws were written in the ________.

Accepted Answer

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

Question 15

Classic laissez-faire theory is based on all of the following EXCEPT that

Accepted Answer

A)   government monopolies depress economic growth.
B)   people's selfishness can promote the public good.
C)   a truly efficient government allows private enterprise to provide all government services.
D)   economic competition unleashes growth and innovation.
E)   government should stay out of the private sector except when providing a select number of public goods.

Question 16

Which of the following was NOT one of the goals of the American Recovery and Reinvestment Act of 2009?

Accepted Answer

A)   encourage economic growth
B)   develop weatherization projects and clean technology construction
C)   save existing jobs that might be lost due to the economic recession
D)   provide for a national health care system
E)   make longer-term investments to encourage job creation

Question 17

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Accepted Answer

A)   control discretionary spending.
B)   deregulate the economy.
C)   regulate large businesses that establish monopolies.
D)   control mandatory spending.
E)   close tax loopholes.

Question 18

Before World War II, ________ of federal revenue was generated from individual income taxes.

Accepted Answer

A)   less than 15 percent
B)   a quarter
C)   half
D)   80 percent
E)   100 percent

Question 19

________ 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

Question 20

Describe some of the different tools and techniques that federal officials have at their disposal for regulating economic policy. What are monetary policies and fiscal policies? What are other ways in which government leaders can encourage or compel business representatives to behave in certain ways?

Accepted Answer

Federal officials have a variety of tool...

Exam 16: Government and the Economy

Correct Answer
Answered by ExamLex AI
Federal officials have a variety of tool...
View Answer

The ________ insures bank deposits up to $250,000.

Correct Answer
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Classic laissez-faire theory is based on all of the following EXCEPT that

Correct Answer
verified

In order to have reliable information about the costs and impact of economic policies, Congress created the ________.

Correct Answer
verified

________ film, An Inconvenient Truth, attracted broad attention to the issue of climate change in 2006.

Correct Answer
verified

Before World War II, ________ of federal revenue was generated from individual income taxes.

Correct Answer
verified

Which of the following statements best characterizes the percentage of the federal budget that is spent on mandatory programs?

Correct Answer
verified

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Correct Answer
verified

Why have politicians always favored using subsidies to promote certain economic activities?

Correct Answer
verified

During the nineteenth century, the federal government received most of its revenue from ________.

Correct Answer
verified

Today, labor unions represent about ________ percent of the labor force.

Correct Answer
verified

A way to reduce the disparities in wealth between the rich and poor is called a(n) ________.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

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

Correct Answer
verified

A ________ is an incentive in the tax code for individuals and corporations to invest their money in ways that government officials desire in exchange for a reduction in tax liabilities.

Correct Answer
verified

Which of the following is NOT an example of mandatory spending?

Correct Answer
verified

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?

Correct Answer
verified

Open-market operations describe the

Correct Answer
verified

Which of the following was NOT one of the goals of the American Recovery and Reinvestment Act of 2009?

Correct Answer
verified

Most of the groundbreaking environmental laws were written in the ________.

Correct Answer
verified

Exam 16: Government and the Economy

Correct AnswerAnswered by ExamLex AIFederal officials have a variety of tool...View AnswerShow Answer

The ________ insures bank deposits up to $250,000.

Correct AnswerverifiedShow Answer

Classic laissez-faire theory is based on all of the following EXCEPT that

Correct AnswerverifiedShow Answer

In order to have reliable information about the costs and impact of economic policies, Congress created the ________.

Correct AnswerverifiedShow Answer

________ film, An Inconvenient Truth, attracted broad attention to the issue of climate change in 2006.

Correct AnswerverifiedShow Answer

Before World War II, ________ of federal revenue was generated from individual income taxes.

Correct AnswerverifiedShow Answer

Which of the following statements best characterizes the percentage of the federal budget that is spent on mandatory programs?

Correct AnswerverifiedShow Answer

The Interstate Commerce Act and the Sherman Antitrust Act are examples of the federal government's attempt to

Correct AnswerverifiedShow Answer

Why have politicians always favored using subsidies to promote certain economic activities?

Correct AnswerverifiedShow Answer

During the nineteenth century, the federal government received most of its revenue from ________.

Correct AnswerverifiedShow Answer

Today, labor unions represent about ________ percent of the labor force.

Correct AnswerverifiedShow Answer

A way to reduce the disparities in wealth between the rich and poor is called a(n) ________.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A ________ is an incentive in the tax code for individuals and corporations to invest their money in ways that government officials desire in exchange for a reduction in tax liabilities.

Correct AnswerverifiedShow Answer

Which of the following is NOT an example of mandatory spending?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Open-market operations describe the

Correct AnswerverifiedShow Answer

Which of the following was NOT one of the goals of the American Recovery and Reinvestment Act of 2009?

Correct AnswerverifiedShow Answer

Most of the groundbreaking environmental laws were written in the ________.

Correct AnswerverifiedShow Answer

Correct Answer
Answered by ExamLex AI
Federal officials have a variety of tool...
View Answer

Correct Answer
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