Question 1

The primary instrument by which the federal government manages fiscal policy is the __________________.

Accepted Answer

A)   Federal Reserve Bank
B)   Brookings Institute
C)   issuance of executive orders
D)   federal budget
E)   cap and trade initiative

Question 2

What is an economic theory that is based on the principle that government should increase spending when economic times are bad as a way of raising total demand?

Accepted Answer

A)   trickle-down theory
B)   laissez-faire economics
C)   Keynesian economics
D)   open economy theory
E)   progressive taxation

Question 3

As part of the executive office of the president, which of the following determines whether an agency's budget proposals are in accordance with the president's program and then uses the proposals to prepare an overall budget for the coming fiscal year​?

Accepted Answer

A)   ​office of administration
B)   ​office of the vice president
C)   council of economic advisors
D)   ​office of management and budget
E)   ​office of legislative affairs

Question 4

The most widely utilized indicator of the overall condition of the stock market on any given day is the _______________.

Accepted Answer

A)   congressional accounting office
B)   White House press releases
C)   Wall Street Journal
D)   Dow Jones Industrial Average
E)   prime rate

Question 5

Which of the following is not a method or purpose of the Federal Reserve?

Accepted Answer

A)   to set the discount rate
B)   to control the supply of money
C)   to control inflation
D)   to stimulate the economy
E)   to control the profits of private banks

Question 6

An economic system in which all or most of the means of production are owned by the community as a whole is called _______________.

Accepted Answer

A)   socialism
B)   capitalism
C)   welfare state
D)   democracy
E)   communism

Question 7

In the policymaking process, the stage in which the policy under consideration assumes the authority of law through ratification by Congress or through regulations issued by the relevant administrative agencies is called the ________ stage.

Accepted Answer

A)   evaluation
B)   formulation
C)   adoption (or legitimation) 
D)   recognition-definition
E)   implementation

Question 8

Regulation of the money supply and interest rates by a central bank, such as the U.S. Federal Reserve Board, in order to control inflation and stabilize currency is called ____________________.

Accepted Answer

A)   fiscal policy
B)   monetary policy
C)   mandatory spending
D)   laissez faire
E)   redistributive tax policy

Question 9

The first nation to adopt social insurance policies was _________________.

Accepted Answer

A)   the United States
B)   France
C)   England
D)   Sweden
E)   Germany

Question 10

Describe the differences between a progressive tax, a regressive tax, and a flat tax. Provide examples of each, and explain how individuals or groups are affected by each of these taxing formats.

Accepted Answer

A progressive tax is a tax system in whi...

Question 11

Provide an understanding of the term monetary policy, and describe the role of the Federal Reserve System. Give an example of a monetary decision or policy made by the Federal Reserve. Who would benefit positively from such a decision? Who would benefit negatively?

Accepted Answer

Monetary policy refers to the actions ta...

Question 12

Medicaid was designed to provide health care to the _______________.

Accepted Answer

A)   aged and ill
B)   poor
C)   working class
D)   bureaucrats
E)   farmers and ranchers

Question 13

Approximately how long after the creation of Social Security were Medicare and Medicaid added to the American social welfare system?

Accepted Answer

A)   10 years
B)   30 years
C)   50 years
D)   75 years
E)   100 years

Question 14

Define the two economic system theories of capitalism and socialism. How do they differ? Using these two theories, describe how the United States has tended to differ with some European nations, such as Sweden, in the role of a central government as a provider of social benefits.

Accepted Answer

Capitalism and socialism are two economi...

Question 15

Which economic theory, widely accepted prior to the 1930s, advocates less intervention in the economy, allowing businesses to conduct their affairs more or less free from governmental regulation?

Accepted Answer

A)   trickle-down theory
B)   laissez-faire theory
C)   Keynesian economics
D)   Roosevelt theory
E)   capitalism

Question 16

In the policymaking process, the formulation stage __________________________________________.

Accepted Answer

A)   is one in which the policy is assessed for its worth and effectiveness in meeting its original objectives and goals
B)   is one in which a bureaucratic agency translates law action through the adoption of administrative regulations and the regulations and the dedication of agency resources to carry out the policy
C)   is one in which the policy under consideration assumes the authority of law through ratification by Congress or through regulations issued by the relevant administrative agencies
D)   is one in which various alternative courses for this policy are considered and a preferred course is selected
E)   is one in which objectives to be fulfilled and goals to be pursued through policy are first identified and defined according to how the problem fits within existing policy categories and then prioritized

Question 17

In which of Herbert Packer's two models would a guilty defendant be most likely to go free?

Accepted Answer

A)   ​crime control model
B)   ​due process model
C)   ​innocence model
D)   ​litigation model
E)   ​production system model

Question 18

What was the purpose of The Budget and Accounting Act of 1921?

Accepted Answer

A)   ​transfer from the president to Congress all budget authority
B)   ​make the president formally responsible for initially formulating the national budget
C)   ​establish the Federal Reserve Bank
D)   ​create the Department of Treasury as an executive department
E)   ​authorize the House Appropriations Committee to initiate the national budget process

Question 19

Which of Herbert Packer's two models describes the criminal justice system as a type of "assembly line justice" because it moves cases quickly and efficiently through the system?

Accepted Answer

A)   ​crime control model
B)   ​due process model
C)   ​innocence model
D)   ​litigation model
E)   ​production system model

Question 20

Social Security is one of the topics that legislators from both major political parties are rarely interested in challenging. Why is this?

Accepted Answer

A)   The topic is far too complicated to understand.
B)   Most realize that nothing would be done anyway so they are not willing to attempt any solutions.
C)   Often referred to as the "third rail," to challenge Social Security in its current form is often politically fatal.
D)   The current system works well.
E)   The Social Security administration is the largest contributor to political campaigns in the United States.

Exam 15: American Domestic Policy

What was the purpose of The Budget and Accounting Act of 1921?

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Provide an understanding of the term monetary policy, and describe the role of the Federal Reserve System. Give an example of a monetary decision or policy made by the Federal Reserve. Who would benefit positively from such a decision? Who would benefit negatively?

Correct AnswerAnswered by ExamLex AIMonetary policy refers to the actions ta...View AnswerShow Answer

The first nation to adopt social insurance policies was _________________.

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Which of the following is not a method or purpose of the Federal Reserve?

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Regulation of the money supply and interest rates by a central bank, such as the U.S. Federal Reserve Board, in order to control inflation and stabilize currency is called ____________________.

Correct AnswerverifiedShow Answer

What is an economic theory that is based on the principle that government should increase spending when economic times are bad as a way of raising total demand?

Correct AnswerverifiedShow Answer

An economic system in which all or most of the means of production are owned by the community as a whole is called _______________.

Correct AnswerverifiedShow Answer

In the policymaking process, the stage in which the policy under consideration assumes the authority of law through ratification by Congress or through regulations issued by the relevant administrative agencies is called the ________ stage.

Correct AnswerverifiedShow Answer

Social Security is one of the topics that legislators from both major political parties are rarely interested in challenging. Why is this?

Correct AnswerverifiedShow Answer

As part of the executive office of the president, which of the following determines whether an agency's budget proposals are in accordance with the president's program and then uses the proposals to prepare an overall budget for the coming fiscal year​?

Correct AnswerverifiedShow Answer

Define the two economic system theories of capitalism and socialism. How do they differ? Using these two theories, describe how the United States has tended to differ with some European nations, such as Sweden, in the role of a central government as a provider of social benefits.

Correct AnswerAnswered by ExamLex AICapitalism and socialism are two economi...View AnswerShow Answer

In which of Herbert Packer's two models would a guilty defendant be most likely to go free?

Correct AnswerverifiedShow Answer

Which economic theory, widely accepted prior to the 1930s, advocates less intervention in the economy, allowing businesses to conduct their affairs more or less free from governmental regulation?

Correct AnswerverifiedShow Answer

Medicaid was designed to provide health care to the _______________.

Correct AnswerverifiedShow Answer

Approximately how long after the creation of Social Security were Medicare and Medicaid added to the American social welfare system?

Correct AnswerverifiedShow Answer

Describe the differences between a progressive tax, a regressive tax, and a flat tax. Provide examples of each, and explain how individuals or groups are affected by each of these taxing formats.

Correct AnswerAnswered by ExamLex AIA progressive tax is a tax system in whi...View AnswerShow Answer

The most widely utilized indicator of the overall condition of the stock market on any given day is the _______________.

Correct AnswerverifiedShow Answer

In the policymaking process, the formulation stage __________________________________________.

Correct AnswerverifiedShow Answer

The primary instrument by which the federal government manages fiscal policy is the __________________.

Correct AnswerverifiedShow Answer

Which of Herbert Packer's two models describes the criminal justice system as a type of "assembly line justice" because it moves cases quickly and efficiently through the system?

Correct AnswerverifiedShow Answer

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Monetary policy refers to the actions ta...
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As part of the executive office of the president, which of the following determines whether an agency's budget proposals are in accordance with the president's program and then uses the proposals to prepare an overall budget for the coming fiscal year?

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Correct Answer
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Capitalism and socialism are two economi...
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A progressive tax is a tax system in whi...
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