question

In The Wealth of Nations (1776), Adam Smith made all of the following arguments for laissez-faire capitalism, EXCEPT which of the following?

answer

The government should not be allowed any role whatsoever in the economy.

question

Which of the following statements best describes the relationship today between government and the economy in the United States?

answer

The government has an important role in regulating and maintaining the U.S. economy

question

Economic efficiency requires

answer

that the output of goods and services is the highest possible given the amount of input used to produce them.

question

The term externalities refers to

answer

unpaid costs of production that are incurred by society.

question

When the Fed was created in 1913,

answer

it had no role in the management of the nation's economy.

question

A ruling by the Food and Drug Administration that a drug is dangerous to use and therefore cannot be marketed is an example of regulation for the purpose of

answer

equity.

question

The era of "new social regulation", which addressed issues such as the environment and worker safety, differed from the previous two eras of regulatory reform in that

answer

the aim was to regulate activities of firms of many types, not just those in a particular industry.

question

Government benefits for business include all of the following EXCEPT

answer

minimum-wage laws.

question

Judged in the context of the full range of public policies, the government in the United States has been

answer

substantially more supportive of business than labor.

question

Government support for agriculture in the form of price supports and income subsidies is designed primarily to

answer

stabilize farm income, which would otherwise fluctuate greatly due to market and weather conditions.

question

Fiscal policy is a mechanism the government employs to influence the economy. Fiscal policy is based on

answer

the government's taxing and spending decisions.

question

In John Maynard Keynes's demand-side economic theory, an economic recession can be shortened through

answer

government spending programs.

question

Supply-side economics, as implemented by President George W. Bush's administration, involved

answer

All these answers are correct

question

A fiscal policy solution to inflation would be to

answer

increase the tax rate.

question

Members of the Federal Reserve Board

answer

are appointed by the president and are not subject to removal.

question

What did Congress do in 1995 to reduce overregulation?

answer

It enacted legislation that prohibits administrators in some instances from issuing a regulation unless they can show that its benefits outweigh its costs.

question

The Progressive Era of government regulation focused on

answer

stopping the unfair business practices of the new monopolies, such as the railroads.

question

Monetary policy includes all the following assumptions EXCEPT that

answer

too little money in circulation contributes to inflation.

question

The Federal Reserve controls the money supply through all of the following actions EXCEPT

answer

lowering the tax rate on individuals.

question

Monetary policy differs from fiscal policy in that

answer

it can be implemented more quickly than fiscal policy.

question

________ wrote The Silent Spring in 1962.

answer

Rachel Carson

question

A major point of debate surrounding the Federal Reserve's role in economic policy is

answer

the Fed's political accountability.

question

Advocates of deregulation are primarily concerned with

answer

efficiency.

question

Regarding the Kyoto agreement and greenhouse gas emissions, which of the following is true?

answer

All these answers are correct.

question

Which president's use of government policy as economic stimulus ushered in the modern era of U.S. government fiscal policy

answer

Franklin Roosevelt1

question

The Superfund program is designed to

answer

provide funds for cleaning up badly contaminated and polluted sites.

question

If the economic problem is low productivity and high unemployment, the fiscal policy action on the demand side would be to

answer

increase spending

question

Which of the following statements is true?

answer

Keynes advocated government spending to counteract an economic downturn.

question

Over the past forty years, the burden of federal taxation has

answer

shifted from corporations to individuals.

question

What has been the preferred strategy of U.S. lawmakers for combating the problem of global warming?

answer

. alternative energy sources and energy conservation

question

Democrats in Washington have usually responded to high levels of unemployment with

answer

increased government spending

question

Which is true regarding the nation's environmental policy?

answer

A majority of the public is sympathetic to environmentalism.

question

Which of the following is correct about environmental policy?

answer

The national parks are subject to a dual use policy of preservation, recreation, and exploitation of the rich natural resources.

question

The ________ established minimum wages and constraints on the use of child labor.

answer

Fair Labor Standards Act of 1938

question

The highest rate of inflation (13 percent) since World War II occurred in ________.

answer

1979

question

he Federal Reserve System

answer

None of these answers is correct.

question

Earth Day was the brainchild of Senator

answer

Gaylord Nelson

question

Keynesian economics emphasizes ________ as a means of curtailing economic downturns.

answer

increased government spending

question

Supply-side economics is based primarily on

answer

stimulation of the business (supply) component.

question

The Federal Reserve plays a large part in establishing ________ policy.

answer

monetary

question

What was a major change brought about by the National Labor Relations Act of 1935?

answer

Workers were given the right to bargain collectively.

question

The first national park was created at ________ in 1872.

answer

Yellowstone

question

Which of the following government agencies regulates business competition?

answer

all of these: the Federal Trade Commission; the Interstate Commerce Commission; and the Antitrust Division of the Justice Department

question

Regulatory activity relating to the environment has actually meant that the environment today is

answer

vastly more clean than it was during the 1960s

question

The creation of the Food and Drug Administration and the passage of the Securities and Exchange Act were intended to

answer

promote equity in the economy.

question

The tax cuts pushed by President George W. Bush while in office were premised largely on

answer

supply-side economics.

question

The Tennessee Valley Authority is

answer

an electricity industry owned by the United States.

question

Farm subsidies have traditionally had strong support in Congress, particularly from

answer

rural-state senators and representatives.

question

About what percentage of the annual federal budget is accounted for by the interest paid on the national debt?

answer

15%

question

The federal government has assumed a permanent, strong role in the economy, contributing to its stability and efficiency, since

answer

the 1930s.

Ch 15 – Flashcard Answers

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards