Chapter 13 and 16 Gov’t Test – Flashcards
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Which of the following statements regarding the role of the federal government in the economy is correct?
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Presidential election outcomes are heavily influenced by the health of the economy.
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The main goal of fiscal policy is________
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To use taxes and government spending to help stimulate or slow down economic growth.
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What is a government program called that provides benefits only to individuals who qualify based on specific needs?
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A means-tested program
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How does American social welfare policy compare to that of other established democracies?
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Americans have a much lower tax rate than most democratic nations, and social welfare benefits are consequently not as generous in the US
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Keynesian economic policy holds which of the following to be true?
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The key task for fiscal policy is to stimulate the supply of goods
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Who is responsible for making monetary?
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The Federal Reserve
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A ___ tax is one by which the government takes a greater share of income of the rich than of the poor.
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Progressive
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What is the source for the money in the Social Security Trust Fund?
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Payroll Taxes
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Laissez-Faire economics holds which of the following to be true?
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The government should not take an active role in the economy
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The underemployment rate is best understood as _____________
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The percentage of Americans seeking working who are unable to find it
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An economic theory holding that the supply of money is the key to a nations economic health and that too much cash and credit in circulation produces inflation is called_____.
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Monetarism
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Inflation is best understood as the rate at which __________.
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Prices for goods and services increase
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What did the welfare reform law of 1996 implement?
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Temporary Assistance for Needy Families
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If the Federal Reserve wanted to slow the rate of economic growth, it would most likely____.
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Increase interest rates
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What is the long-term concern about the Social Security Trust Fund?
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There will be too few workers contributing to support the increasing number of retirees.
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Which is the largest social policy of the federal government?
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Social Security
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What is the purpose of continuing resolutions?
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They allow agencies to spend at the level of the previous year.
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A budget deficit is when _____ exceed(s) revenues in a fiscal year.
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expenditures
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Which of the following budgetary process actors foes the president oversee?
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Office of Management and Budget
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Which of the following investors hold the majority of the federal governments public debt?
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Foreign investors
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The national debt is____ of debt over time.
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Accumulation
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The ______Amendment permits congress to levy income taxes.
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Sixteenth
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Which one of the presidents listed below had Committees and the Congressional Budget Office?
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To advise Congress on consequences of its budget decisions.
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A(n)______is an act of Congress that establishes or changes a government program.
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Authorization bill
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Which of the following is the biggest threat to Social Security?
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Mandated health insurance
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Who pays income taxes?
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Corporations and individuals
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The Social Security Act was passed in the year___.
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1935
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Who benefits most from the military industrial complex?
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Defense Contractors
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A balanced budget occurs when the ____ and the surplus equal zero.
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Deficit
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Why did the United States keep a large permanent military after World War II?
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The Cold War began at the end of World War II
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Which one of the presidents listed below had low budget deficits during his presidency?
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Bill Clinton
